Dick's Sporting expects strict gun sales policy to weigh

(Reuters) - Dick's Sporting Goods Inc <DKS.N>, a U.S. retailer of camping supplies, sporting goods and guns, on Tuesday warned that its decision to tighten gun sales could weigh on 2018 results.

Shares of the company, which missed fourth-quarter revenue estimates, were down nearly 5 percent at $31.

Dick's Sporting said last month it would not sell guns to people under age 21 and would stop selling assault rifles and high-capacity magazines following the massacre at a Florida high school.

The company said it expected 2018 consolidated same-store sales to be flat to decline a low single-digit percentage, including the impact of the recent firearm policy changes.

RELATED: List of companies cutting ties with the NRA

List of companies cutting ties with the NRA
See Gallery
List of companies cutting ties with the NRA

(studioportosabbia via Getty Images)
United Airlines

(superjoseph via Getty Images)


(SAUL LOEB/AFP/Getty Images)

Avis Budget Group Inc.

(Patrick T. Fallon/Bloomberg via Getty Images)


(Photo by Andrew Burton/Getty Images)


(Photo by Robert Caplin/Bloomberg via Getty Images)


(REUTERS/Arnd Wiegmann)

@enamoredgirl Customer feedback has caused us to review our relationship with the NRA. As a result, First National… https://t.co/uPKwPFMHxo
Allied Van Lines no longer has an affiliate relationship with the NRA effective immediately. We have asked them to… https://t.co/IQlB6e4gzi
northAmerican Van Lines no longer has an affiliate relationship with the NRA effective immediately. We have asked t… https://t.co/VLJCWSldAm
Symantec has stopped its discount program with the National Rifle Association.
@grafinator @NRA Best Western Hotels & Resorts does not have any affiliation with and is not a corporate partner of… https://t.co/eMnkiPN3YW
@iainjgrant Please know, Wyndham is no longer affiliated with the NRA.
Thank you all for your feedback. Paramount Rx issued the statement below. “The prescription discount program that… https://t.co/ZFpIwKlpej
We have made the decision not to renew our discount program with the NRA. We will be asking them to remove our info… https://t.co/4eqO3kUR1W

Chubb Insurance

(Photo credit: Facebook)


(Photo credit: Facebook)


(Photo credit: Facebook)


Analysts were expecting same-store sales to grow 0.15 percent, according to Thomson Reuters I/B/E/S.

"It's only been two weeks, and we've seen a bit of a difference in the hunt business, not an awful lot, but it's too early to tell how this is going to be impacted," Chief Executive Officer Edward Stack said on a post-earnings call with analysts.

The company forecast 2018 profit in the range of about $2.80 to $3 per share, while analysts were expecting $2.80.

Telsey analyst Joseph Feldman said he expected sales in other categories such as golf, athletic wear to make up for sales lost in the hunting gear business, pegging the latter's share in total sales at about 10 percent.

The retailer's fourth-quarter net sales rose 7.2 percent to $2.66 billion, but missed estimate of $2.74 billion.

(Reporting by Nivedita Balu in Bengaluru; Editing by Sriraj Kalluvila)

Read Full Story

From Our Partners