Get Woke, Go Broke? DICK'S Sporting Goods

[dannno]

Get Woke, Go Broke? DICK'S Sporting Goods Warns Investors That Decision To Get Rid Of Guns Cost Company Dearly

Dick's Sporting Goods is warning investors that its decision to remove certain "assault-style" weapons from its Field & Stream stores cost it dearly and may limit its future gains.

The sporting goods retailer was forced to confront angry shareholders late last week after its stocks tanked more than 4.5% and financial conglomerate J.P. Morgan Chase downgraded Dick's shares, saying the company was "overweight."

"Gross margin-driven upside appears less probable given 3Q's performance, changing comparisons, and rising inventory levels," an analyst for J.P. Morgan told CNBC. The same analyst noted that same-store sales for Dick's outlets are expected to grow less than 1% even as the company's inventory rises.

"The analyst pointed out that Dick's same-store sales growth for 2019 is expected to be less than 1 percent after averaging 2.1 percent between 2011 and 2015. He also noted that while the company's 25 percent Black Friday store discount will help boost sales, it will not boost margins," the analyst continued. "Inventory levels, meanwhile, rose 1 percent in the third quarter after falling 5 percent in the first half of 2018 with inventory days estimated to return back to 2015-2017 levels."

Dick's says it can trace the downturn not just to an overall retail downturn, but also directly to its decision to take action on "gun control," banning the sales of "assault-style" rifles at its Field & Stream affiliated retailer and discontinuing any gun sales to people under the age of 21.

Speaking to USA Today, Lee Bolitsky, Dick's chief financial officer, called out the company's gun sales plan directly, but also pointed out that gun sales are down across the board — not just at Field & Stream (largely the result of the Trump administration, which is not the kind of pointed threat to gun rights its predecessor was).

"In addition to the strategic decisions we made regarding firearms earlier this year, the broader industry has decelerated and remains weak as evidenced by most recent national background check data,'' Bolitsky told investors. "We believe this also contributed to the decline.''

But while Bolitsky didn't come out and say it directly, it seems that Dick's' decision to cut down on its gun sales had an impact in other areas of its business. Gun owners and pro-gun consumers may not be ale to buy their guns from Dick's any longer, but they also seem to have made the conscious decision not to trust Dick's as an outfitter for any of their other needs — particularly their hunting needs.

Dick's has seen a decline in sales of its hunting gear overall — such a decline that they're considering removing hunting and outdoors equipment from all of their stores in order to boost their bottom line and cull some of their excess inventory.

"Months after Dick's Sporting Goods made the move to stop selling assault-style rifles, the company is now considering removing all hunting gear," a Texas ABC affiliate reported on Friday. "Dick's CEO Edward Stack revealed during a conference call that they removed all hunting gear from 10 stores as a test run."

Those stores — including stores in Texas — will replace the hunting gear with more "traditional sporting goods," like "baseball, licensed products, and outerwear."

https://www.dailywire.com/news/38935...ign=modelnames

[CCTelander]

Good.

[oyarde]

I do not shop there but there is a store 40 miles north of me . I am sure the gun sales ban hurt them and removing all hunting items would just hurt them more with those that continued to shop there . Hunting items ,Guns & Ammo are mainstay items of any successful sporting store . Not sure why anyone would be holding a dud stock like that . We have other places here that are well used , Rural King , Dunhams etc

[shakey1]

as it should

[phill4paul]

Glad I could help them lose money.

[oyarde]

Kind of retarded to piss off your customer base by insulting them but it is named Dick so .....

[TheTexan]

I'm not sure why they were sold there ever at all. Assault weapons are not "sporting goods". They are tools and instruments of war.

It would be like Best Buy selling hand grenades.

[Anti Federalist]

I'm not sure why they were sold there ever at all. Assault weapons are not "sporting goods". They are tools and instruments of war.

It would be like Best Buy selling hand grenades.

Alcohol Tobacco Firearms and Explosives should be a retail outlet, not a government agency.

[Danke]

Alcohol Tobacco Firearms and Explosives should be a retail outlet, not a government agency.

Why taunt The Texan, has he been through enough with the recent passing?

[Anti Federalist]

Why taunt The Texan, has he been through enough with the recent passing?

Because I hate Texas, and everything in it, outside of The Pauls of course.

[RJB]

I have both a D---s and a Field and Stream near me. I am always tempted to go to the Field and Stream, but I refuse to even go there to browse. They can both go bankrupt. I am actually surprised they aren't doing worse than what the article says.

[Anti Globalist]

That's what they get for caving in to gun control. Clearly the higher ups there weren't born with a spine.

[Grandmastersexsay]

I'm not sure why they were sold there ever at all. Assault weapons are not "sporting goods". They are tools and instruments of war.

It would be like Best Buy selling hand grenades.

You don't consider shooting a sport in and of itself?

[TheTexan]

You don't consider shooting a sport in and of itself?

Shooting can be a sport, if its done within the framework of a governing body and set of rules. e.g., Olympic shooting.

Without rules, it wouldn't be a sport, it would just be anarchy.

[TheTexan]

Alcohol Tobacco Firearms and Explosives should be a retail outlet, not a government agency.

I'm pretty sure alcohol can't be sold in the same store as firearms. Nice try though!

[RJB]

Because I hate Texas, and everything in it, outside of The Pauls of course.

I heard that Texas is the world's largest gay bar. ETA Not that there is anything wrong with that, of course.

[bunklocoempire]

Get Woke, Go Broke? DICK'S Sporting Goods Warns Investors That Decision To Get Rid Of Guns Cost Company Dearly

Dick's Sporting Goods is warning investors that its decision to remove certain "assault-style" weapons from its Field & Stream stores cost it dearly and may limit its future gains.

The sporting goods retailer was forced to confront angry shareholders late last week after its stocks tanked more than 4.5% and financial conglomerate J.P. Morgan Chase downgraded Dick's shares, saying the company was "overweight."

"Gross margin-driven upside appears less probable given 3Q's performance, changing comparisons, and rising inventory levels," an analyst for J.P. Morgan told CNBC. The same analyst noted that same-store sales for Dick's outlets are expected to grow less than 1% even as the company's inventory rises.

"The analyst pointed out that Dick's same-store sales growth for 2019 is expected to be less than 1 percent after averaging 2.1 percent between 2011 and 2015. He also noted that while the company's 25 percent Black Friday store discount will help boost sales, it will not boost margins," the analyst continued. "Inventory levels, meanwhile, rose 1 percent in the third quarter after falling 5 percent in the first half of 2018 with inventory days estimated to return back to 2015-2017 levels."

Dick's says it can trace the downturn not just to an overall retail downturn, but also directly to its decision to take action on "gun control," banning the sales of "assault-style" rifles at its Field & Stream affiliated retailer and discontinuing any gun sales to people under the age of 21.

Speaking to USA Today, Lee Bolitsky, Dick's chief financial officer, called out the company's gun sales plan directly, but also pointed out that gun sales are down across the board — not just at Field & Stream (largely the result of the Trump administration, which is not the kind of pointed threat to gun rights its predecessor was).

"In addition to the strategic decisions we made regarding firearms earlier this year, the broader industry has decelerated and remains weak as evidenced by most recent national background check data,'' Bolitsky told investors. "We believe this also contributed to the decline.''

But while Bolitsky didn't come out and say it directly, it seems that Dick's' decision to cut down on its gun sales had an impact in other areas of its business. Gun owners and pro-gun consumers may not be ale to buy their guns from Dick's any longer, but they also seem to have made the conscious decision not to trust Dick's as an outfitter for any of their other needs — particularly their hunting needs.

Dick's has seen a decline in sales of its hunting gear overall — such a decline that they're considering removing hunting and outdoors equipment from all of their stores in order to boost their bottom line and cull some of their excess inventory.

"Months after Dick's Sporting Goods made the move to stop selling assault-style rifles, the company is now considering removing all hunting gear," a Texas ABC affiliate reported on Friday. "Dick's CEO Edward Stack revealed during a conference call that they removed all hunting gear from 10 stores as a test run."

Those stores — including stores in Texas — will replace the hunting gear with more "traditional sporting goods," like "baseball, licensed products, and outerwear."

https://www.dailywire.com/news/38935...ign=modelnames

Well sure, but are you sure it isn't just some guy wanting to get laid/get high?

You conscience pricker, you.

[Danke]

I heard that Texas is the world's largest gay bar. ETA Not that there is anything wrong with that, of course.

Is it near a port? AF would be all over that. Houston?

[oyarde]

I'm not sure why they were sold there ever at all. Assault weapons are not "sporting goods". They are tools and instruments of war.

It would be like Best Buy selling hand grenades.

Then I would shop there .

[oyarde]

I'm pretty sure alcohol can't be sold in the same store as firearms. Nice try though!

I was just envisioning a shotgun/assault rifle shop with beer and bait .

[phill4paul]

I may shop there one last time if they have a 'Going out of business" sale.

[oyarde]

I may shop there one last time if they have a 'Going out of business" sale.

If they mark the ammo down by half or something let me know .

[Swordsmyth]

With sales falling after the implementation of corporate gun control Dick’s Sporting Goods may have to close 35 stores across 18 states.

The option of the closing the stores was revealed during a retail conference question and answer session with Goldman Sachs.
Dick’s Chief Financial Officer Lee Belitsky made clear no more of the company’s Field & Stream stores would be built and CEO Edward Stack went even further, floating the option of the closing the Field & Stream stores that exist already.

More at: https://www.breitbart.com/politics/2...oss-18-states/

[VIDEODROME]

Just what we need for this economy.

[juleswin]

Just what we need for this economy.

Their loss in business is going to be another stores gain. I bet Cabelas and Bass proshop are hiring right now. Its the vicious circle of business life

[Swordsmyth]

Removing hunting items from 125 stores
Last year, Dick’s removed hunting items from 10 stores where it underperformed. After the removal, those stores generated positive comp sales in Q4. “Following this success,” Dick’s CEO Ed Stack said on the Q4 earnings call, “we will remove Hunt from approximately 125 additional Dick's stores in 2019 where the category underperforms.”
Dick’s defines the hunting category as rifles and ammunition, plus “accessories associated with firearms, hunting apparel, anything associated with hunting,” Dick’s president Lauren Hobart clarified later on the call. “It would not include kayaks and other outdoor activities like that.”
Dick’s entered the national political conversation one year ago when it stopped selling assault-style rifles in all 35 of its Field & Stream stores following the school shooting in Parkland, Fla. It also immediately raised the minimum age to 21 for anyone buying guns in its stores.
Dick’s has seen same-store-sales declines since then, and some have blamed that on politics, but Dick’s stock is up 10% since that move, and up 12% in 2019 so far.
On Tuesday’s call, Dick’s signaled that the Field & Stream brand may soon go away. “We're not sure exactly what we're going to do with it,” said Stack. “We're not opening any new Field & Stream stores. And right now, on a formal basis they're cash flow positive and they're not a drain on the company.”

More at: https://finance.yahoo.com/news/dicks...170829124.html

[UWDude]

I heard that Texas is the world's largest gay bar. ETA Not that there is anything wrong with that, of course.

It's the largest Steer bar.

[sparebulb]

I'm very pleased with Dick's transition.

After they phase out hunting and fishing, they can focus on their new target items like butt-plugs and dental dams.

They should also trans the name to Dyke's.

[Swordsmyth]

Last February, when Dick’s Sporting Goods boss Ed Stack announced he was restricting gun sales at the country’s largest sports retailer, he knew it’d be costly.
At the time, Dick’s was a major seller of firearms. Guns also drove the sale of soft goods—boots, hats, jackets. What’s more, Stack, the retailer's chief executive officer, suspected the position could drive off some of his customers on political principle.

He was right. Dick’s estimates the policy change cost the company about $150 million in lost sales, an amount equivalent to 1.7 percent of annual revenue. Stack says it was worth it.

More at: https://www.bloomberg.com/news/artic...-sales-by-150m

[Swordsmyth]

Two staunch gun control advocates, HBO's Real Sports with Bryant Gumbel and Dick's Sporting Goods, got locked and loaded together for an assault on the Second Amendment last week. Real Sports reporter David Scott interviewed gun restrictions advocate Ed Stack, the CEO at Dick's Sporting Goods, to talk about why his business has discontinued sales of AR-15s. "I don't want it in our stores, and it will never be in our stores. I think the risk out-weighs the reward," Stack (in photo) told Scott, an Emmy Award-winning producer.
Stack said, "This rifle has its genesis in war, and people can say that it's been modified and it hasn't been. But the origins of this gun, primary reason, was to kill. We thought it would impact our sales, ya know, $150 to $250 million."
"Sounds like a lotta money," Scott responded. "It is a lotta money," Stack replied.
Scott: "Clearly your position now is that particular gun doesn't belong in a sporting goods store."
"And we succumbed to the pressure," Stack said, "which is one of the things – I don't have too many regrets in my life and my business career, but that is one of them. I wish we had never done it."
As Scott related, Dick's lost customers, suppliers and a few dozen employees, but says his "only regret was to agree to sell the AR-15 as a sporting good to begin with."
Gumbel's HBO program has been called a fake sports program using sports as a smokescreen for social commentary, and this was not his first anti-gun propaganda program. HBO couldn't even get a favorable review from The New York Times of all newspapers for its 2014 attack on the right to bear arms, "Requiem for the Dead." The Times' Neil Genzlinger wrote in 2015 that Requiem offered "no investigatory work," it's "an uncomfortable sense of intruding again on the pain of people who have already been in the public spotlight" and it's merely a "blame-the-gun film."
In studio talk with Scott in 2015, Gumbel called gun owners "scary" and said they "keep mining new depths.”
And HBO has taken AR-15 hysterics to new heights. In 2016, the FBI reported that rifles were used in just two percent (374 of 15,070) of murders and AR-15's were only a fraction of that total.

More at: https://www.newsbusters.org/blogs/cu...cond-amendment