Dick's is "doubling down"

HB · Mar 13, 2019

Gun market is terrible right now anyway. My guess is stocking large amounts of guns wasnt that profitable for them anyway. Margin on new guns is usually 20% or so at retail stores.

Tents, clothing, and other imported crap is much more profitable and more in line with their model.

Waveski · Mar 13, 2019

psyopspec said:
You guys might think they're morons, but cutting unprofitable sectors is a very standard business move. The market appears to agree, given their stock is up 3.5% on the day.

+ 3.5% today , but that does not recover the significant losses of yesterday.

JTHunter said:
One of the local TV news stations reported this morning that Dick's Sporting Goods is planning on stopping ALL sales of firearms...

According to WSJ , firearms sales will cease at 125 stores , out of a total of 700+.

<*(((>< · Mar 13, 2019

Waveski said:
+ 3.5% today , but that does not recover the significant losses of yesterday.

According to WSJ , firearms sales will cease at 125 stores , out of a total of 700+.

They might as well as cease firearms sales in the rest of the 575 stores, with the press they've had over the last few years speaking against firearms it's a stupid decision on their part to stop at 125 stores. Just my opinion. I don't like "lukewarm" stores capitalizing on the 2nd Amendment, either one is all in or not.

.455_Hunter · Mar 13, 2019

Trey Veston said:
One of the advantages of living in the sticks, is that I am not exposed to the drama involving big box sporting goods stores. The nearest such store is a Sportsman's Warehouse 50 miles away. Nearest Cabela's is 70 miles away. Never been to it. Stopped in a Dick's once in Phoenix back in 2012. Prices were horrible, selection was horrible, and no employees in sight. Not impressed. Regarding the only "local" big box stores, with a 14mpg SUV, they have to have some impressive prices for me to drive there rather than order it online and have it delivered to my house.

Still, I will go to the Sportsman's Warehouse to stock up on certain powders and to fondle guns that I will likely order from Bud's.

I live 15 miles from two fairly large towns with a combined population of around 70,000 people on the edge of some of the best hunting and fishing in North America.

Guess how many gun shops there are in those two towns? Zero. There is ONE hardware/hiking supplies/fishing/housewares/firearms store in the Idaho town. And WalMart. Guess how many marijuana dispensaries there are? Five.

Why? Because these are college towns full of liberals and snowflakes and millenials who have been raised by the mainstream media.

They are the future of this country and they hate it, hate guns, hate God, hate liberty, and they hate the constitution(except the parts that let them attack conservatives and act like spoiled children).

Sorry, but this is the way the country is going. My values and your values are dying and there is no way around it. Within a decade, there will be no more 2nd amendment, no 4th amendment, and we will lament the days that you could shoot a firearm at a range without the fear of a compliance drone detecting it and coming for you.

I guess it depends where you live.

There sure are lots of younger people at the Denver Gun Shows and the customers at the LGS(s) are a full range of patrons.

ATLDave · Mar 13, 2019

Waveski said:
+ 3.5% today , but that does not recover the significant losses of yesterday.

> Drops rat off tall building
> Rat is in trouble
> Rat hits concrete hard
> Dead rat bounces a couple of inches
> The market says the rat is back!

mrmike7189 · Mar 13, 2019

CDW4ME said:
Good!
They join ToysrUs and Kmart before too long.

Yeah ..I remember when Kmart sold guns. My dad remembers when Sears sold guns.
Sports Authority sold guns as well.....they are all gone.....(but not forgotten) Lol

toivo · Mar 13, 2019

Deanimator said:
Walmart employees generally seem to lack knowledge of their merchandise in general.

Absolutely. The last time I was in Wal-Mart, I wanted to open a box of Winchester White Box .380 ACP to see if they were round-nose or flat-nose bullets. (It wasn't marked on the box.) The employee told me it was against the law to open ammo boxes. I asked why, and he said that it was because I might get fingerprints on the cartridges and then not buy them, which could cause problems for law enforcement if the casings were later found at a crime scene.

He said this with a straight face and was very insistent that it was true. I finally got him to admit that he had never laid his eyes on any state laws regarding ammunition purchases, and that all his information came from his store training. I assured him that it was complete BS, but that I understood his position and wouldn't want him to jeopardize his job by going against policy. Not that it matters, but I think

As for Dick's, to bring things back to topic, I haven't bought anything from them since the days when they would give you 10% off shotgun shells if you bought by the flat, and additionally give you Score Card points for the purchase. My gut feeling is that it's a big shell game played for PR purposes.

mrmike7189 · Mar 13, 2019

I wonder if they will have a big sale? I could help them out stock up on ammo at a big discount!

Deanimator · Mar 13, 2019

ohihunter2014 said:
I frequent the Middleburg heights store quite often for reloading supplies, cleaning products, etc. I'm not sure when the last time you visited Avon Cabelas was, but they did away with a lot of the bulk ammo or at least moved it to where I couldn't find it.

I was there a few months ago when I was looking for the 7 1/2" Cimarron Frontier that I eventually bought from Bud's. They seemed to have lots of bulk commodity ammunition like 9x19mm and 5.56x45mm ball. They didn't have anything I needed, unlike in the past.

ilbob · Mar 13, 2019

walmart stopped selling guns in some stores just because it was unprofitable. I applaud them wanting to stay in business by abandoning something that they are not making money at. the important thing is not to sell guns, but to stay profitable.

Ohen Cepel · Mar 13, 2019

Don't forget that dick's owns Field and Stream and I think that will cost them heavily in the long run. You can't have a hunting store when you decide to not sell guns, make up random rules to run legal buyers away (setting your own age limits) and generally anger your customer base. dicks' may be alright selling soccer stuff and other things but the F&S is going to be a tough road to hoe!

jmorris · Mar 13, 2019

Well, they already PO’ed a lot of their firearms shoppers, why not? They are already going elsewhere to get their other sporting goods, why not cater to your lefty buddies more?

Not unlike B-B-Q restaurants not having vegan items on their menus. Same for the only Vegan place I ever was forced to go to but in the opposite way.

Double Naught Spy · Mar 13, 2019

ATLDave said:
Uh, so the NYT is just spouting right-wing biased fake news? https://www.nytimes.com/2019/03/12/business/dicks-sporting-goods-stock-gun-control.html

"But his outspoken approach may have put pressure on his company, which sells much more than guns. In announcing its earnings on Tuesday, Dick’s said adjusted same-store sales fell 3.1 percent in the 12 months that ended Feb. 2 from the comparable period a year earlier.

In the fourth quarter, which included the holiday shopping season, adjusted same-store sales were down 2.2 percent. Net income for the quarter fell to $102.6 million, or $1.07 a share, from $116 million, or $1.11 a share in the year-earlier period.

Public reaction to the policies Dick’s introduced after the Parkland shooting was a “meaningful driver” in the declines, Mr. Stack said in a conference call with analysts on Tuesday. Intensifying competition from Amazon was another, analysts said."

Nope, not fake news, but different news. So sales were down, but profits were actually up. From Market Watch...
https://www.marketwatch.com/investing/stock/dks/financials
2014 2015 2016 2017 2018
6.21B 6.81B 7.27B 7.92B 8.59B Sales Revenue
1.94B 2.09B 2.18B 2.37B 2.5B Gross Income
337.6M 344.2M 330.39M 287.4M 323.45M Net Income

Dividends continue to increase. In fact, Dick's just about to pay its largest quarterly dividend so far.
https://www.streetinsider.com/dividend_history.php?q=DKS

Dick's took a hit for 4th quarter being down, but otherwise the company is still well ranked, doing fine.

Dick's had a bad 4th quarter, no doubt, but then again, so did Amazon. I don't think we are boycotting them, too, are we?
https://www.cnbc.com/2018/12/24/amazon-on-track-for-worst-quarter-since-q3-2001.html

paulsj · Mar 13, 2019

sparkyv said:
Double on down to the poor house. Their stock has taken a hit in the past few quarters since they started this nonsense. What Maroons!

Are you sure it's not due to competition from "Walmart Distribution from Manufactuer to Your Door Center"? You know, Amazonia.

G'dale Mike · Mar 13, 2019

Speedo66 said:
Dick's own Field & Stream. Are they stopping gun & hunting sales there, too? If they're not, then this is just corp. BS to fool a market segment into thinking they're anti-gun.

Which may have been the plan as to why they opened those stores in the first place.

I thought i saw where they are closing allotta of the field and stream stores

psyopspec · Mar 13, 2019

Waveski said:
+ 3.5% today , but that does not recover the significant losses of yesterday.

According to WSJ , firearms sales will cease at 125 stores , out of a total of 700+.

Thanks for correcting me -- I thought we were talking about news that broke this morning. Bad indeed to take a hit like yesterday on a day when the S&P was up ~1.5%.

scaatylobo · Mar 13, 2019

JTHunter said:
One of the local TV news stations reported this morning that Dick's Sporting Goods is planning on stopping ALL sales of firearms as well as ALL hunting supplies, including clothing.

It makes you wonder how long they will be able to stay in business.

I fully expect and HOPE they fold = teaching all the rest a great lesson.

They want to kill off their business,good for them.

Speedo66 · Mar 13, 2019

They opened a Field & Stream not far from me some years back during the .22 ammo shortage. Dick's and everyone else hadn't had any in months. Suddenly this new store was having a sale on it, with pallet stacks of it.

There was a huge line outside opening day, which seemed to head right to the ammo area. They limited sales, but I stilled managed to buy a few Remington "Bucket o' Bullets", I think something like 1400 rounds in each. Didn't see much else being sold, haven't been back since.

Olon · Mar 13, 2019

Alte Schule said:
I think the question that needs to be asked is: Who cares? It's obvious they lost a lot of business due to alienating many of their customers with their questionable business decisions regarding firearms last year.

Agreed. I don't care because Dick's was never a place I went for gun stuff except to pick up the occasional box of shotgun shells if I was already in the store. It's not my business (convenient but unintentional pun) so I just don't give a rip. I think using ''gun violence'' as an excuse to get rid of an unprofitable department for them was a dumb move but hey, I've been dumb before...

I'll just keep on buying from the stores I've been going to and let those who wish to pontificate on some company's marketing strategy do just that.

22250Rem · Mar 13, 2019

Last thing I bought from Dick's was a single shot, bolt action, 22 cal. Savage Rascal so one of my step grand daughters could have something more her size to learn on. Not only was it on sale but it also qualified for a $50. rebate from Savage which brought my final cost to $91..... But that was in December of 2017. Then I began to get alienated by the anti-gun rhetoric from the top management and soon after made the decision not to shop there any more. Meanwhile; a RUNNINGS home, farm & outdoor store opened not all that far from me with a large gun dept., reloading supplies, powder, lots of ammo, all kinds of other outdoor gear and good prices to boot. Since last October they've made two long gun sales to me and I'm very satisfied with the guns, the prices, and the people who work there. So for the folks who choose to not patronize a firm expressing anti-gun sentiment, take heart. There are other retailers out there who are willing to fill whatever void Dick's has created; and in my area RUNNINGS is doing a good job of doing just that.

rpenmanparker · Mar 13, 2019

They sell a bunch of golf clubs, fishing rods and baseball bats. I was in Dick’s this past weekend. They appeared to be doing fine. I predict a long run for the chain. It is so bizarre how folks think that only guns matter. To me, yes. To most other folks, not so much.

rpenmanparker · Mar 13, 2019

With all the things there are to be offended about in this country, is it really necessary to get worked up about a store choosing not to sell guns?

Deanimator · Mar 13, 2019

rpenmanparker said:
With all the things there are to be offended about in this country, is it really necessary to get worked up about a store choosing not to sell guns?

They also chose to finance efforts to make sure that there won't BE any guns TO buy in the future.

I wouldn't buy from somebody trying to repeal the 13th Amendment. Why would I buy from one trying to repeal the 2nd?

LiveLife · Mar 13, 2019

Their latest business move could be "lose/lose" proposition.

Pro-gun customers will stop buying and anti-gun customers reminded that Dick's used to sell guns may not buy either.

Robert · Mar 13, 2019

Dick's is nothing more than a glorified golf shop, has been since the son took over. I really don't see a point in getting into yet another Dick's thread, or an economics thread.

Dick's is "doubling down"

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