Tag Archives: DICK’S Sporting Goods

CEO Ed Stack is okay with Dick’s Sporting Goods’ $150M loss from gun control stance

In America today, privately-owned businesses are no longer motivated by profit and service. Instead, businesses have become an arm of the Democrat Party by discriminating against conservatives and promoting the Left’s agenda — on abortion, anti-Trump political partisanship, illegal immigration, LGBT, and anti-Second Amendment gun-control.

A case in point is Dick’s Sporting Goods.

After the mass shooting last February 2018 at the Marjory Stoneman Douglas High School in Parkland, Florida, Dick’s was one of the first businesses in the U.S. to clamber on board the ensuing “March for Our Lives” gun-control movement by declaring they would stop selling assault rifles and high-capacity magazines, barr the legal sale of guns to those under age 21, and hire their own gun-control lobbyists to push for stricter gun laws nationwide.

At the time, Dick’s paradoxically predicted that although the move could hurt sales, it would also draw more shoppers to its stores.

In August 2018, Dick’s admitted that sales at stores open for at least 12 months  tumbled by a bigger-than-expected 4% during the second quarter. But billionaire Chairman and CEO Edward W. Stack, 65, put on a brave face, insisting he was confident sales would turn around. (See “Pro-gun control Dick’s Sporting Goods sales down 4%; will close 35 stores”)

Dick’s drop in sales has continued, such that the company may soon close down their entire Field & Stream chain of 35 stores across 18 states. CEO Stack admitted the company’s gun control stance was hurting business but offered no indication he would reverse course.

On March 29, 2019, Bloomberg reports that since its gun-control policy, Dick’s lost “about $150 million” — an amount equivalent to 1.7% of annual revenue. Yet Stack claims the $150 million loss was worth it. He virtue-signaled:

“The system does not work. It’s important that when you know there’s something that’s not working, and it’s to the detriment of the public, you have to stand up.”

What happened at Dick’s confirms a new Stanford University study that fond that although respondents said they were more likely to buy a product to support a CEO’s political stance than they were to boycott in disagreement, their actions revealed the opposite. When asked for specific examples, 69% could name a product they’re boycotting, but only 21% could recall a product they started buying to support a political stance.

Strangely, despite Dick’s loss of $150 million from its gun control stance, the company’s stock price hasn’t suffered. Dick’s shares, which didn’t move much following the gun-control announcement last February, actually climbed 14% in the 13 months since, outpacing the 4% rise in the benchmark Russell 3000 Index.

Stack owned about 25% of Dick’s common stock, and controlled nearly two-thirds of its voting shares, as of 2010. After selling 5.8% of his holdings in 2013, he owned around 20% of the company, primarily via Class B shares. (Wikipedia)

Stack’s not finished, though. He is one of just four CEOs to sign a letter supporting a universal gun control bill, and he recently joined the business council of Everytown for Gun Safety, a non-profit for gun control founded by billionaire former New York Michael Bloomberg.

H/t Big Lug

~Eowyn

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Pro-gun control Dick’s Sporting Goods sales down 4%; will close 35 stores

Actions have consequences, and Dick’s Sporting Goods is discovering what its gun-control virtue-signaling costs.

But Dick’s billionaire chairman and CEO doesn’t give a hoot.

Dick’s first modified its gun-sales policy in the wake of the Sandy Hook false-flag shooting, saying it would no longer sell AR-15s and certain other semiautomatic rifles.

See “Wolfgang Halbig has stunning evidence that Sandy Hook Elementary School was closed months before ‘massacre’

But Dick’s quickly circumvented its pledge by opening its outdoor-focused Field & Stream chain.

After the mass shooting last February at the Marjory Stoneman Douglas High School in Parkland, Florida, Dick’s was one of the first businesses in the U.S. to clamber on board the ensuing “March for Our Lives” gun-control movement by declaring they would stop selling assault rifles and high-capacity magazines, barr the legal sale of guns to those under age 21, and hire their own gun-control lobbyists to push for stricter gun laws nationwide.

On the Parkland shooting, see “Parkland school shooting: Eyewitnesses saw killer wearing different clothes” and “Application for ‘March For Our Lives’ permit was made months before Parkland school shooting”.

At the time, Dick’s paradoxically predicted that although the move could hurt sales, it would also draw more shoppers to its stores.

In August, Dick’s admitted that sales at stores open for at least 12 months  tumbled by a bigger-than-expected 4% during the second quarter. But Chairman and CEO Edward W. Stack put on a brave face, insisting he was confident sales would turn around.

See DCG’s “What do you know: Dick’s Sporting Goods misses 2nd quarter sales expectations

Alas, Dick’s drop in sales is continuing, such that the company may soon close down their entire Field & Stream chain of 35 stores across 18 states.

On September 15, 2018, Dick’s billionaire CEO Edward Stack, 64, told investors during the Goldman Sachs Retailing Conference that same-store sales dropped 3.9%, that its “decisions…on firearms” has hurt sales of its hunting and outdoors business, and that it may close its outdoor-focused Field & Stream stores.

Stack, son of Dick’s Sporting Goods’ founder Richard “Dick” Stack, said:

“Well, we’ve made that decision at the end of February, what we’re going to do with firearms. And what we said is, we would not sell any of the assault-style rifles, we wouldn’t sell high-capacity magazines. We’d never sold bumps stocks which turn a semiautomatic weapon into basically an automatic weapon, and we wouldn’t sell firearms to anyone under 21 years of age.

So that’s in February. It’s still a little early to tell…. So we’ve had some vendors who’ve decided based on our decision to not sell the assault-style rifle that was used in the Parkland shooting that they wouldn’t sell us…any firearms anymore…. We’ve had some other people who’ve indicated that they wouldn’t shop with us any longer. So we’ve got to take a look and we’ll assess this through this holiday season, if the brands are going to continue to or not. Some brands are not going to continue to sell us. If consumers upset with us, we will make a decision of what we’re going to do with Field & Stream.

My sense is that we can either take a look at closing that store, that concept or reconceptualizing it into a more of an outdoor type concept and…as we move into the end of the fourth quarter, we’ll make a decision as to what we’re going to do.”

Having admitted that Dick’s gun-control stance has hurt sales, Stack whistles past the graveyard by entrenching even deeper in the company’s sales-losing policy. He said:

“We’ve made some decisions on firearms in the past and we’ve had a pretty good idea of what these consequences were going to be. We felt that was absolutely the right thing to do. We would do the same thing again if we had a mulligan so to speak to do it again. And but at the same time, our business has been pretty good….

So has it had an impact on the foot traffic and people who were upset with us on this? Yes. Has it

impacted our profitability? No. We found ways to offset that. We’re…taking 10 stores this fall and taking firearms out of all of those 10 stores and reconceptualizing the footprint, the product mix….we’re going to test this in 10 stores and see what happens.”

On December 4, Dick’s settled an age discrimination suit stemming from its decision not to sell guns to adults under age 21, according to a report from Oregon Public Broadcasting.

H/t The Washington Free Beacon

~Eowyn

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What do you know: Dick’s Sporting Goods misses 2nd quarter sales expectations

Shocker, not. Pandering to the social justice warriors doesn’t guarantee they’ll boost your profits.

From CNBC: Shares of Dick’s Sporting Goods plunged by more than 9 percent Wednesday morning after the retailer said it sold less merchandise during the second quarter than analysts were expecting.

Sales at Dick’s Sporting Goods stores open for at least 12 months also tumbled by a bigger-than-expected 4 percent during the quarter. It was partly blamed on athleisure brand Under Armour, which has been moving into more low-price retailers like Kohl’s, frustrating companies like Dick’s that try to sell inventory at higher price points.

Under Armour shares were also falling Wednesday morning.

“As expected, sales were impacted by the strategic decisions we made regarding the slow growth, low margin hunt and electronics businesses, which accounted for nearly half of our comp decline,” CEO Ed Stack said in a statement. “In addition, we experienced continued significant declines in Under Armour sales as a result of their decision to expand distribution.”

Dick’s was also one of the first businesses in the U.S. to stop selling assault rifles and high-capacity magazines, and barred the sale of guns to customers under age 21 following the February massacre at a high school in Parkland, Florida. The company had predicted this move could hurt sales but also would draw more shoppers to its stores.

Stack said Wednesday he was confident sales would turn around as those challenges lessen.

Dick’s raised its profit outlook for the full year and now expects to earn $3.02 to $3.20 per share in 2018, up from a prior range of $2.92 to $3.12.

Read the whole story here.

DCG

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