Dick’s beats profit target despite backlash over gun-sales restrictions
Author: Joe Williams, The Washington Examiner - May 31, 2018 - Updated: May 31, 2018
Despite backlash over halting sales of assault-style guns in its stores, Dick’s Sporting Goods posted higher revenue for its most recent quarter and greater-than-expected profit.
The Coraopolis, Pa.-based company’s net sales grew 4.6 percent to $1.9 billion for the three months that ended on May 5. Net income was $60 million, or 59 cents per share, which beat expectations of 45 cents.
“Product newness, strength in our private brands and a more refined assortment led to a much healthier business, with fewer promotions and cleaner inventory throughout the quarter,” Chief Executive Officer Edward Stack said in a statement. “We are also continuing to see the results of investments in our digital experience, and we will continue to invest.”
The company raised its full-year profit target to $2.92 to $3.12 a share, up from a prior estimate of $2.80 to $3.
Dick’s, the nation’s largest retailer of sporting goods products, revised its firearms policy after a shooting at a Florida high school killed 17 students and staff. The company also raised the minimum age to buy firearms in its stores to 21. Stack previously told investors that it expected to lose customers as a result of the policy shift. In a reversal, he told investors on Wednesday that it likely brought in new customers who previously may not have shopped at Dick’s.
After the earnings report, Dick’s stock was up 23.33 percent from the prior day’s close to $37.59.