Arizona -(Ammoland.com)- Dick’s Sporting Goods took the politically correct route to placate media pushed gun control after the mass murder in Florida. They banned the sale of the popular AR-15 type rifles and said they would refuse to sell rifles to people under 21 years old. Federal law requires that gun dealers not sell rifles and shotguns to people less than 18 years old. It wasn’t the first time the controversial chain had put political correctness ahead of stockholders and customer.
The CEO of Dick’s Sporting Goods said he’s forging ahead with his new gun sales policy, even though he expects to lose customers.
“There’s going to be some pushback and we expected that,” said CEO Edward Stack, in an earnings call with Wall Street analysts. “There are going to be the people who don’t shop us anymore for anything.”
A couple of weeks later, sales have dropped, and so has Dick’s stock price. Fortune magazine says that the drop in stock price should not be assumed to have anything to do with the store’s decision to anger a significant percentage of its customers. From fortune.com:
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.
That may be true. Stocks of gun manufacturers have dropped a bit during President Trumps administration. But gun sales are at historically high levels, down only a little from the record set in 2013 and 2016.
Most companies realize that it is bad business to mix politics and sales on controversial issues. No matter what side you are taking, you are taking a side, and those who you side against will be angered.
If you do not take sides, those angered will only be the ones whipped into an emotional frenzy by the short term media attacks. It may lead to a temporary blip in sales, but it will be quickly over. You will join the majority of businesses that do not take sides. If you have a strong base on one side of an issue, it may make sense. But if any, Dick’s base is on the side of the Second Amendment.
It seems Dick’s CEO is putting his politics ahead of his shareholder’s profits. There is strong competition in sporting goods retail, much of it from online retailers.
©2018 by Dean Weingarten: Permission to share is granted when this notice is included.
About Dean Weingarten:
Dean Weingarten has been a peace officer, a military officer, was on the University of Wisconsin Pistol Team for four years, and was first certified to teach firearms safety in 1973. He taught the Arizona concealed carry course for fifteen years until the goal of constitutional carry was attained. He has degrees in meteorology and mining engineering, and recently retired from the Department of Defense after a 30 year career in Army Research, Development, Testing, and Evaluation.
Time to give Dick’s a taste of their namesake, “DICKS”!!!
I hope they sell a lot of tennis shoes. Now the folks will be running from the criminals instead of shooting at them.
We don’t have an F&S here but Dick’s is available, and I did shop there for the occasional good ammo deal. Now I will not even shop there for that savings opportunity. There is a direct correlation between profits, share pric3 and alienating your best customers. Frankly, other than for the ammo, guns, archery and outdoor gear I have zero reason to shop there. The best thing that can happen is the trend stays the same and they have to close stores. I do have one question for all these stores that just stop selling those items, do they just… Read more »
Dick’s is typical of the Liberal mindset that believes everyone should think as they do. I have never shopped there, and I never will. There are too many great deals on line. But I do sincerely hope they go under just for the principle of the thing. They hate their customers, and only want to serve the Starbucks hiker crowd. Good luck with that.
I will never shop at Dicks. Period
Like a lot of their customer I will never shop at Dicks again and I haven`t For years’ I went in to buy Ammo and they said I had to press a button if I was a citizen or the other button if I was not a citizen. I asked what the difference was and was told if I wasn`t a citizen I had to show a hunting license I also informed them that I owned a farm and did not need a license to hunt .I told them that I could produce many IDs that showed I was a… Read more »
When k-mart stopped sell firearm stuff… they died since people went to Wal-Mart.. I remember when Wal-Mart sold even pistols. Now only politically correct long guns. Dick was born and raised in New York State. Liberalism is in his blood. He figures this will actually INCREASE his business…it probably will. Locally he replaced a SEARS store with his full retail merchandise store. When I drive by the parking lot is full. So, he is winning for now. I guess libs like to pay full retail and shop at a politically correct store. Until yuppies fall to the same fate as… Read more »
Many years ago, Sports Authority sold guns. Because of political correctness, it stopped selling guns. Where is it now? Nowhere, thanks to stupidity. I hope the same future faces Dick’s.
Shouldn’t have been anyone shopping there since they first pulled their stunt. Yall broke weak just like watching the superbowl
I bought ammo there two days before they announced the new anti 2A policy. I now drive to Cabelas about 20 miles further for ammo. Prices better at Cabelas anyway, I just buy more so I only need to make the trip every other month.
I WILL NEVER STEP INSIDE A DICKS OR FIELD & STREAM EVER AGAIN!