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CORAOPOLIS, Pennsylvania (AP) – Dick's Sporting Goods Inc. announced Tuesday that it would stop selling rifles and hunting ammunition in 125 of its stores, replacing equipment with goods that it said , will sell better.
CEO Edward Stack said the move came after the sporting goods retailer replaced hunting supplies in 10 of its stores in the third quarter of last year. These stores posted solid sales and profit margin figures in the fourth quarter, he said.
The hunting equipment will be removed this year from 125 additional stores where it does not sell well, he said. It will be replaced by "categories of commodities that can generate growth, each based on the needs of that particular market," he said in a conference call with analysts.
At the beginning of February, the company operated 729 Dick's Sporting Goods stores in the United States.
Dick's hit the headlines in 2018 when, as a result of the Marjory Stoneman Douglas High School massacre, he banned the sale of assault rifles and the sale of all rifles to people under the age of 21.
The announcement of the hunt products came after the announced drop in sales in the fourth quarter and a low earnings forecast that would have brought Dick's stock down by more than 10%.
She reported net income of $ 102.6 million or $ 1.07 per share. That was $ 116 million, or $ 1.11 a share, a year ago. The results corresponded to Wall Street's expectations. The average estimate of 11 analysts surveyed by Zacks Investment Research also posted a profit of 1.07 USD per share for the last quarter.
The company, based in Coraopolis, Pennsylvania, posted sales of $ 2.49 billion over the period, exceeding Street's forecast. Seven analysts surveyed by Zacks were expecting $ 2.48 billion. But that represented $ 2.66 billion a year earlier.
Sales at stores that were open for at least a year – a key measure for retailers – dropped by 2.2%.
For the year, the company recorded a profit of $ 319.9 million, or $ 3.24 per share. Revenues were reported at $ 8.44 billion.
Dick's expects earnings per share of $ 3.15 to $ 3.35 in a full year. According to FactSet, the mid-point of this range is lower than Wall Street's forecast of $ 3.33 per share.
His stock was down from $ 4.20 to $ 34.69 in afternoon trading.
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