I guess they forgot their customers were Americans.
Dick’s Sporting Goods is warning investors that its decision to remove certain “assault-style” weapons from its Field & Stream stores cost it dearly and may limit its future gains.
The sporting goods retailer was forced to confront angry shareholders late last week after its stocks tanked more than 4.5% and financial conglomerate J.P. Morgan Chase downgraded Dick’s shares, from “overweight” to “neutral.”
“Gross margin-driven upside appears less probable given 3Q’s performance, changing comparisons, and rising inventory levels,” an analyst for J.P. Morgan told CNBC. The same analyst noted that same-store sales for Dick’s outlets are expected to grow less than 1% even as the company’s inventory rises.
“The analyst pointed out that Dick’s same-store sales growth for 2019 is expected to be less than 1 percent after averaging 2.1 percent between 2011 and 2015. He also noted that while the company’s 25 percent Black Friday store discount will help boost sales, it will not boost margins,” the analyst continued. “Inventory levels, meanwhile, rose 1 percent in the third quarter after falling 5 percent in the first half of 2018 with inventory days estimated to return back to 2015-2017 levels.”
Dick’s says it can trace the downturn not just to an overall retail downturn, but also directly to its decision to take action on “gun control,” banning the sales of “assault-style” rifles at its Field & Stream affiliated retailer and discontinuing any gun sales to people under the age of 21.
by Emily Zanotti
