Dick’s Sporting Goods Executive Finally Admits That AR-15 Ban Was Bad for Business…
Dick’s Sporting Goods stock has been dropping since their decision to stop selling “assault style” rifles. Their stock fell more than 4.5 percent Thursday after J.P. Morgan said the retailer’s future gains may be limited.
Although the company had performed better-than-expected in their third quarter, top executives are admitting that their growth was impacted by the decision to ban the AR-15 from their stores.
“In addition to the strategic decisions we made regarding firearms earlier this year, the broader industry has decelerated and remains weak as evidenced by most recent national background check data,” Lee Bolitsky, Dick’s chief financial officer said. “We believe this also contributed to the decline.”
Dick’s Sporting Goods is now considering getting rid of their hunting gear to help growth because it reportedly under performs “significantly.”
“We are looking at a number of stores where the hunt business significantly under performs, and we will assess whether we want to take it out and replace it with these other categories if that ends up to be a smart thing to do from a business standpoint,’’ says CEO Ed Stack.
The company is firm on their decision to stop the sale of the AR-15 and will not reconsider, though they aren’t sure if getting rid of hunting gear will help their floundering stock.