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

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

  1. Another one is gonna bite the dust! Yeepeee!

     
  2. Behaviors do have consequences (except when it comes to Hillary & Bill Clinton).

     
  3. Not everyone wants to buy an AR. But there’s a lot of folks out there that think dicks went too far when they politicized the issue. Businesses would do well to stay neutral on religion and politics. Basically that were most fight begin.

     
  4. Kevin J Lankford

    Presuming powers and authority governments don’t have. Not good business sense.

     
  5. It’s not easy being Dick’s.

     
  6. Under Armour sales dropped at Dicks, because we are buying it at places that support our second amendment rights.

     
  7. Not another penny from me.

     
  8. Attention CEOs and corporate boards, Leftist ideology your hip “Business thought leader” slings is philosophically against making a profit. Just so you know.

     
  9. Since Dick’s took it upon themselves to make a stand limiting the rights of law abiding citizens I no longer do business with them. They expressed their right to do business the way they want so the sales loss is on them. I know many people who will not shop there anymore…

     

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