Dick's says new gun policy will impact sales, shopper visits

FILE- In this March 1, 2018, file photo a customer carries her purchase from a Dick's Sporting Goods store in Madison, Miss. Dick's Sporting Goods, Inc. reports earnings Tuesday, March 13, 2018. (AP Photo/Rogelio V. Solis, File)
FILE- In this March 1, 2018, file photo, a sign for Dick's Sporting Goods store is displayed at the store in Madison, Miss. Dick's Sporting Goods, Inc. reports earnings Tuesday, March 13, 2018. (AP Photo/Rogelio V. Solis, File)

CORAOPOLIS, Pa. — Dick's Sporting Goods on Tuesday reported disappointing holiday sales numbers in part due to weak demand for one-time hot brands like Under Armour.

The company's CEO also said recent changes to its firearm policies, ending the sale of guns to anyone under 21, will hurt future sales and may cause fewer shoppers to come to its stores.

Last month, Dick's stepped into the national spotlight when, in the aftermath of a school massacre in Parkland, Florida, it banned the sale of assault-style rifles and the sale of all guns to anyone under 21. Other retailers followed suit, including Walmart, which also raised its minimum age rules for firearms.

Sales fell 2 percent at established stores during the fourth quarter, which was about double the decline that Wall Street was expecting. Industry analysts watch that figure closely as a barometer of a retailer's health as it excludes the volatility of stores recently opened or closed.

To try and improve sales, CEO Edward Stack said the company will give more store space to its private-label brands, such as Second Skin workout apparel. Its store brands are growing faster than others, and Stack expects them to surpass $2 billion in sales in a "short period of time," but did not give an exact time for that to happen.

Stack said that the company's new firearms policy "is not going to be positive from a traffic standpoint and a sales standpoint."

Dick's expects full-year earnings of about $2.80 to $3 per share. Analysts polled by FactSet predict $2.79 per share.

For the period ended Feb. 3, Dick's Sporting Goods Inc. earned $116 million, or $1.11 per share. A year earlier the company, based just outside of Pittsburgh in Coraopolis, Pennsylvania, earned $90.2 million, or 81 cents per share.

Excluding certain items, earnings were $1.22 per share. That's 2 cents better than analysts expected, according to a survey by Zacks Investment Research.

Revenue rose to $2.66 billion, from $2.48 billion, with online sales up about 9 percent. But that was still shy of Wall Street projections for $2.73 billion.

Shares of Dick's Sporting Goods Inc. ended Tuesday up 32 cents, or about 1 percent, at $32.88 after dipping to $29.53 earlier in the day.

_____

Portions of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on DKS at https://www.zacks.com/ap/DKS

Must Read

Hearing on Johnny Depp domestic violence allegations delayed

Aug 9, 2016

A judge is briefly delaying a restraining order hearing involving Johnny Depp and his estranged wife because it is expected to span several days; depositions of both actors set

TV executive predicts 500-show bubble destined to deflate

Aug 9, 2016

Television viewers know there's a mind-boggling array of shows to attempt to watch, but FX Networks chief executive John Landgraf predicts that change is coming

Beyond 'Obamacare': State initiatives refocus health debate

Aug 9, 2016

Political activists are looking to state ballot questions to move beyond "Obamacare" and refocus the nation's long-running debate over government's role in health care

People also read these

Hearing on Johnny Depp domestic violence allegations delayed

Aug 9, 2016

A judge is briefly delaying a restraining order hearing involving Johnny Depp and his estranged wife because it is expected to span several days; depositions of both actors set

10 Things to Know for Thursday

Aug 11, 2016

Among 10 Things to Know: Criticism may be slowing Trump train; 'Grim Sleeper' sent to death row; versatile ESPN sportscaster dies at 61

Rio authorities step up security after bus windows shattered

Aug 10, 2016

Military police in Rio de Janeiro are stepping up security at the Olympics after a bus carrying journalists had two of its windows shattered by a projectile and a bullet flew into the stables of the equestrian venue

Weather, 20 December
Houston Weather
+7

High: +11° Low: -2°

Humidity: 83%

Wind: NNE - 7 KPH

Canberra Weather
+27

High: +27° Low: +17°

Humidity: 87%

Wind: W - 20 KPH

Roissy-en-France Weather
+6

High: +6° Low: -5°

Humidity: 87%

Wind: ENE - 7 KPH

Florence Weather
+9

High: +9° Low: +6°

Humidity: 97%

Wind: ENE - 17 KPH

Parga Weather
+7

High: +16° Low: +4°

Humidity: 100%

Wind: SE - 25 KPH