Dick's to stop selling guns in 125 stores amid sales fallout from ban By Joe Williams Published March 12, 2019 Retail Dick's Sporting Goods no longer selling hunting supplies Fox Business Briefs: After declining sales of hunting supplies in certain stores, Dick's Sporting Goods is considering no longer selling hunting supplies in select stores.
Dick’s Sporting Goods is planning to eliminate guns and other hunting products from 125 stores in 2019, a move that comes as the retailer continues to suffer fallout from its controversial decision to ban the sale of some firearms.
The Coraopolis, Pennsylvania-based chain removed the category from 10 stores in 2018, locations which then “had a strong margin rate improvement,” CEO Ed Stack told investors on Tuesday.
The in-store sections will be replaced with “merchandise categories that can drive growth," he said.
Following a shooting in Florida in February 2018 that left 17 students and staff dead, Dick’s hiked the minimum age to purchase a gun to 21 and prohibited the sale of AR-15 style rifles.
Ticker Security Last Change %Chg DKS DICKS SPORTING 35.74 +1.14 +3.28% Advertisement
While Stack previously predicted it would bring in new customers, the decision has led to a decline in earnings in the firm’s hunting business.
In the three months through Feb. 2, declines in the sector drove a 3.7 percent drop in same-store sales. Overall, sales dropped 6.5 percent to $2.5 billion, the company said on Tuesday. Profits fell to $694 million, or adjusted to $1.22 per share – higher than analysts expected.
CLICK HERE TO GET THE FOX BUSINESS APP
Dick’s expects 2019 earnings to hit as high as $3.35 per share.