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Home / Business / Dicks Sporting Goods reports stronger than expected sales, earnings despite weapon sales restrictions

Dicks Sporting Goods reports stronger than expected sales, earnings despite weapon sales restrictions



CORAOPOLIS, Pennsylvania – In February, Dicks Sporting Goods decided to stop selling high-powered assault rifles and magazines and raise the minimum age for buying a firearm to 21.

Pain management executives. Instead, they got good news.

Dick's Sporting Goods share price rose by up to 27 percent after reporting quarterly sales and earnings more than expected.

It is the first measure of his decision to break away from some weapons

"There were a number of people who started shopping for us, or they said they would buy us more because of politics," he said CEO Ed Stack on Wednesday at an analyst meeting.

"There's definitely been an advantage for people who came to us because of politics, so to speak."

Stack said that the company's full-year forecast for 201

8 is based on a 2.92 profit margin Previously raised to $ 3.12 per share has previously announced coverage of $ 2.80 to $ 3.

The company also announced that its online sales jumped 24 percent. However, same-store sales fell by 2.5 percent.

In its income statement, the company blamed the onset of the same store for "a continued slowdown in hunting and electronics sales and a colder spring weather, leading to a decline in delayed launch of major outdoor sports and activities. "

Stack and Chief Financial Officer Lee Belitsky said the company's" hunting business "would be affected by the new weapons policy, even though it was already in decline.

The arms industry as a whole has seen a sharp drop in sales and profits since the election of President Donald Trump, a Republican backed by the National Rifle Association.

Concerns over gun control had fueled sales during the Obama administration, but these concerns

"The hunting business saw an accelerated decline in an area that was already challenging," Belitsky said.

While the company's new weapons policy may have gained something The 1965 National Shooting Sports Foundation, a weapons industry group, was ruled out by Dicks members on May 4.

The NSSF said it took the step of Dick's job

A few days later, on May 9, gunsmith Mossberg ended his relationship with Dicks.

"We do not currently have the best relationship with the weapons manufacturers," said Stack. when asked about it by an analyst. "As far as the NSSF expels us, we have not had much to do with it …

Other major retailers have changed their weapons policy since a mass shooting at a high school in Parkland, Florida, which killed 17 people.

Walmart Kroger also said it would phased out arms sales at its Fred Meyer stores.

The gun and ammunition maker Vista Outdoor Earlier this month, it said

But under pressure from Wall Street firm BlackRock, a major shareholder, American Outdoor Brands, which owns the Smith & Wesson brand, said it would not be pushed into "politically motivated" promotions ] A top manager at Bank of America said in April that the bank would "no longer finance military-grade weapons for civilian use," even though Bank Remington continues to be at its mercy helped, which ended earlier this month.

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