DICK’S Sporting Goods CEO Edward Stack made a blunt admission in a Q4 earnings call after the retailer saw a deeper-than-expected sales decline. In the wake of the decision to pull assault-style rifles at all 35 Field & Stream stores, Stack said “the announcement we made two weeks ago regarding our firearms policy is not going to be positive from a traffic standpoint and a sales standpoint.”
The retailer stopped sales of the assault-style rifles after the Feb. 14 Parkland, Fla. high school shooting in which 17 people were killed.
But in the call, Stack revealed “some of those customers that buy firearms buy other things also. And we’ve had some pushback and we knew that that was going to happen, and we try to have that in our guidance.” Stack noted that some people upset with the decision simply won’t shop at DICK’S altogether.
Stack anticipates 2018 same-store sales will be flat to down a low-single digit percentage, which would be worse than the 0.3% decline the retailer experienced in 2017.
DICK’S was one of the first major retailers to take a firm stance on gun sale age restrictions, raising the minimum age for purchase to 21. Walmart, Kroger and other retailers such as REI, Mountain Equipment Co-Op and L.L.Bean followed shortly thereafter with similar decisions.
Despite being the clear national sporting goods leader following Sports Authority’s demise, DICK’S has been unable to capitalize on its pole position. The retailer has struggled with many of the same issues department stores have, particularly when it comes to redundant product offerings, excess inventory and deep markdowns. On top of that, the retailer competes with the major brands it sells, with Nike, Under Armour and Adidas all selling through direct-to-consumer channels.
Q4 revenues of $2.66 billion fell short of projections for $2.74 billion, while same-store sales fell 2%. Analysts had estimated a drop of 1.2%, according to Consensus Metrix. E-Commerce sales rose 9% in Q4.
- DICK’S Sporting Goods Will Halt Gun Sales At 125 Stores
- NRF Preview: Execs From Macy’s, Kroger, Lowe’s and Alibaba Headline Must-See Sessions
- Exclusive CDO Q&A: BJ’s Goes All-In On Digital Transformation
- DICK’S Ends Assault Rifle Sales In Wake Of Florida Shootings
- Golf Club ‘Trade-In’ Program Lifts Conversions 30% At TaylorMade