Dick’s Profit Jumps as Gun Restrictions Have Muted Impact on Sales

Dick’s Profit Jumps as Gun Restrictions Have Muted Impact on Sales

Dick’s Sporting Goods Inc. DKS 22.67% posted higher quarterly profits and sales, allaying concerns that its controversial decision to tighten gun policies would damp demand at the sporting-goods chain. The retailer said its hunting business suffered, but reported better demand for other items, which helped profit margins. Dick’s said it relied on fewer promotions to move merchandise and was able to reduce its inventories. Same-store sales declined 2.5% in the latest quarter compared with the same period a year ago. Analysts polled by Consensus Metrix were expecting them to drop 1.4%. Dick’s Chief Executive Edward Stack in March said that the new gun restrictions had hurt traffic and sales at Dick’s as customers unhappy with the moves said they would shop elsewhere . Profit rose 3.2% to $60.1 million, or 59 cents a share in the quarter ended May 5. The profit was better than Wall Street expected and the company raised its profit goals for the fiscal year. Dick’s reported total sales of $1.91 billion, up 4.6%, helped by the opening of new stores and the conversion of former Sports Authority stores, which filed for bankruptcy. Dick’s operates more than 800 stores, including Golf Galaxy and Field & Stream locations. Shares of the company rose 18% premarket. Year to date, they have risen 6.1%. Related Video Your browser does not support HTML5 video. 0:00 / 0:00 Skip Ad in 15 Could Remington Outdoor, the maker of the AR-15 style rifle used in the Sandy Hook shooting, be held […]

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.