Dick’s Sporting Goods stop selling rifles, shares plunged Tuesday.
Dick’s Sporting Goods (DKS) shares plunged Tuesday after it announced it will stop selling firearms at 125 stores and miss same-store sales estimates. The sports equipment retailer also guided low on profit for current fiscal year after Foot Locker (FL) reported a blowout Q4 earlier this month.
Dick’s Sporting Goods Earnings
Estimates: Wall Street expected Dick’s Sporting Goods earnings per share to slip 12% to $1.07 as revenue slid 7% to $2.48 billion, according to Zacks Investment Research. Same-store sales were seen falling 3.3%, according to Consensus Metrix.
Results: Dick’s Sporting Goods reported flat profit of $1.22 a share. Revenue fell to $2.49 billion. Same-store sales fell 3.7%, or 2.2% on a calendar-shifted basis..
Outlook: Dick’s sees EPS for the year at $3.15-$3.35. Analysts expected Dick’s Sporting Goods earnings of $3.38. Dick’s also sees comps flat to up 2%.
The company will also no longer sell hunting products, including rifles and ammunition, at the outlets, and will instead sell licensed sports gear and outdoor recreation equipment. The company has already removed the category in 10 stores, out of its more than 700 stores.
CEO Ed Stack said during the earnings call that comp sales rose in these stores in the most recent quarter, while comp sales dropped overall.
Sales at the chain dipped last year when it stopped selling assault rifles and high-capacity magazines following a high school shooting in Parkland, Florida.