Dick's Sporting Goods' stock yesterday saw its "biggest one-day advance since going public" in '02, as the sports retailer "impressed investors with higher profit guidance, outweighing uncertainty over the loss of gun sales," according to Matt Townsend of BLOOMBERG NEWS. The stock spiked as much as 28% yesterday as Q1 revenue "beat expectations, despite the company's move to end sales of assault-style rifles in February after a shooting at a Florida high school." Coupled with "stronger private-label sales and fewer promotions, management had the confidence to raise the annual profit forecast." Dick's Chair & CEO Ed Stack said that the move on guns actually had the "advantage of drawing in new customers as well." Stack: "There has been a number of people who have started shopping us because of the policy." Bloomberg analyst Chen Grazutis added, "The backlash from the change in firearms policies was clearly limited" (BLOOMBERG NEWS, 5/30).
FULL STEAM AHEAD: THE HILL's Josh Delk noted despite same-store sales dropping by 2.5% due to "declines in hunting and electronic sales, investors had worried that the company's move to stop sales on assault-style weapons would cause greater damage" (THEHILL.com, 5/30). In Pittsburgh, Stephanie Ritenbaugh noted Dick's sales were "boosted by a stronger performance by the company’s private label brands and Team Sports business," as well as the Eagles' Super Bowl win (POST-GAZETTE.com, 5/30). FORBES' Elizabeth MacBride noted Dick's financial results are being "closely watched in the gun community." The latest quarterly results indicate that, at least so far, the "threatened boycotts by the gun community and actions by gun manufacturers to isolate Dick’s didn’t have an effect on the retailer’s financial picture" (FORBES.com, 5/30). New York Gov. Andrew Cuomo tweeted, "@DICKS Sporting Goods has shown that responsible corporate leadership is good for business" (TWITTER.com, 5/31).
