Stupid Is As Stupid Does: Dick’s Sporting Goods To Destroy AR-15 Semi-Automatic Rifles Inventory

[dennishoddy]

Dick's Sporting Goods Is Tumbling – But Don't Blame Its New Policy on Guns
Dick’s Sporting Goods Inc. has vowed to limits sales of guns. Its problem, however, is poor sales of everything else.

Only weeks after winning accolades from gun-control advocates for ending sales of assault rifles at its Field & Stream stores, Dick’s posted a deeper-than-expected sales decline. Its stock sank the most in four months Tuesday in the wake of the quarterly report, which reflected struggles with excess inventory and deep discounting.

The future had appeared bright after Sports Authority collapsed in 2016, leaving Dick’s as the last national chain of its kind. But price cutting by competitors and tepid demand for items like basketball shoes have hammered the stock and put pressure on profit margins.

The company is also facing a threat from Nike, the largest sports brand in the world, which has been pushing more of its customers to its own stores and websites. And Amazon.com Inc. is promoting its own private-label athletic gear.

Dick’s move last month at its three-dozen Field & Stream stores — extending a ban on assault-style rifles already in place at its namesake locations — came after a fatal shooting spree at a Florida high school. The company also raised the age limit to 21 from 18 on the purchase of any firearm. But the effect on its business remains to be seen.

Shares of Dick’s fell as much as 7.3 percent to $30.19 in New York, the biggest intraday decline since mid-November. They had climbed 13 percent this year through Monday’s close.

Fourth Quarter
Excluding some items, profit amounted to $1.22 a share in the fourth quarter that ended Feb. 3, the company said in a statement. Analysts had estimated $1.24 on average. Sales of $2.66 billion also fell short of projections for $2.74 billion.

Same-store sales, a key metric, fell 2 percent in the period. Analysts had estimated a drop of 1.2 percent, according to Consensus Metrix. E-commerce sales rose 9 percent.

Looking forward, Chief Executive Officer Edward Stack said “stronger product innovation from select key partners and the continued expansion of our private brands” will result in less pressure on profit margins this year.

The company plans to open 19 Dick’s stores this year, with eight of those coming in the current quarter.

Profit this year will be $2.80 to $3 a share, the company said. Same-store sales will range from flat to a low-single-digit decline

I hadn't looked at their ticker price. Good to hear it's on the decline. One of these days management will find out that stoopid decisions will result in results the stockholders won't like, and will force a change in management.

 

[DavidMcmillan]

Do you suppose that there will be a strict accounting on the number shipped to the warehouse and the number actually distorted?

 

[dennishoddy]

Do you suppose that there will be a strict accounting on the number shipped to the warehouse and the number actually distorted?

I actually think the idiots that made this decision will follow through with the complete destruction. It's all on computer inventory so one would have to be pretty stupid to lose their job over a $500 rifle, although I wouldn't put it past someone to try.

 

[RugersGR8]

I actually think the idiots that made this decision will follow through with the complete destruction. It's all on computer inventory so one would have to be pretty stupid to lose their job over a $500 rifle, although I wouldn't put it past someone to try.

Let's just hope their stupidity will cause them to lose their J-O-B EITHER WAY!

 

[dennishoddy]

Let's just hope their stupidity will cause them to lose their J-O-B EITHER WAY!

Let's keep in mind how Chick fil a got a monster favorable response by going against the left.
Dicks needs to be reminded where they make their money.

 

[rc508pir]

Let's keep in mind how Chick fil a got a monster favorable response by going against the left.
Dicks needs to be reminded where they make their money.

I went into a Dicks once in the 13 years I have been here. That was 11 years ago. They wanted $400 for a Mosin. Laughed so hard I bout had an asthma attack

 

[NightShade]

I went into a Dicks once in the 13 years I have been here. That was 11 years ago. They wanted $400 for a Mosin. Laughed so hard I bout had an asthma attack

I walked through one once in OKC a couple years ago. Had never been in one and after a short walk I left never to return. If people complain that Cabela's is overpriced I would just suggest they go to Dick's and really get bent over the counter.

 

[Okiedog]

If they are really seroius, why not man up and close the stores? That would show true commitment.

 

[Biggsly]

I never bought from Dick's because Academy was always cheaper. Now I won't buy from Dick's because they are a bunch of Dick's.

 

[Okie4570]

What a bunch of penis wrinkles............