When Dick’s Sporting Goods announced earlier this year the chain would no longer sell so-called assault weapons at its Field and Stream locations, the backlash was intense.
The store made headlines and was slammed across social media and conservative news outlets for the anti-gun move. Some shoppers even abandoned the store altogether.
Now, the financial implications of the chain’s decision are becoming much clearer.
The company’s share price dipped more than 4 percent after a devaluation by J.P. Morgan, reports CNBC.
Stock in the company was downgraded by an analyst after failing to inspire confidence. The downgrade saw the stock slapped with a “neutral” label, meaning investors don’t see it as a rapid earner anytime soon.
And it’s not just a stock downgrade signaling rough seas ahead for the sporting goods store.
Same-store sales growth for the company took a staggering hit, projected to grow at less than half the rate as the previous years’ average. This may eventually slow to a standstill if customers continue to abandon the chain.
And why wouldn’t any gun-loving American ditch this store?
Dick’s made its infamous decision to heavily restrict its firearms sales days after the Parkland shooting in Florida. The company even planned to destroy the weapons instead of sending them back to the manufacturer, according to the Pittsburgh Post-Gazette.
Destroying money making inventory may have been done to send a message, but it could have also worked to scare away potential investors worried about the future of a company more concerned with catering to liberals than turning a profit.
Despite the less-than-stellar financial outlook, Dick’s now seems to be doubling down on bad business decisions.
Since gun buyers have decided to stay away from Dick’s, CEO Edward Stack is now considering removing all hunting equipment from the stores.
Ten stores have already removed hunting items, reports WTVD. Those items were replaced with outerwear, baseball gear and other things likely found cheaper on Amazon.
While a sporting goods store excluding certain sportsman may seem like a bad business idea, Stack is hopeful about the test.
It seems as though Dick’s is intent on whittling down its “dangerous” merchandise, at any cost.
And although the company has survived nearly a year after its anti-gun decision, restructuring the stores to exclude certain sportsmen and outdoorsmen is sure to hurt the retailer even more down the line.
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