Dick’s Sporting Goods today reported a "bigger-than-expected drop" in Q2 same-store sales and "forecast further declines this year, hit by tighter gun controls and a drop in Under Armour sales," according to Vibhuti Sharma of REUTERS. Dick’s was "one of the first retailers to stop selling assault rifles and high-capacity magazines as well as bar the sale of guns to people under age 21" following the Stoneman Douglas High mass shooting in February. The company had predicted that its "hunting guns business would be pressurized by the change in policy but said the move should also attract more people to its stores." Dick’s said that it "expected annual same-store sales to decline" by 3-4%, compared with a 0.3% decline in Q2 '17. The company is "confident that its sales trajectory will improve next year" (REUTERS, 8/29). At presstime, shares of Dick's were trading at $34.95 per share, down 3.93% from the close of business yesterday (THE DAILY).
BLAME GAME: CNBC.com's Thomas & Kopecki note the drop in sales was "partly blamed" on Under Armour, which has been "moving into more low-price retailers like Kohl's, frustrating companies like Dick's that try to sell inventory at higher price points." Dick's said that online sales increased 12% during the quarter, "boosted by some of its private-label brands." The company has been "investing more in its own in-house lines, like Second Skin." It has also "seen success with a line for women called Calia by Carrie Underwood" (CNBC.com, 8/29). CNBC's Sara Eisen said, "This is some name-calling and blame-gaming for sure out of Dick's Sporting Goods." Eisen said UA is "expanding its distribution" with retailers like Kohl's, which "has called out Under Armour on the flip side for positive growth and helping its own sales" ("Squawk on the Street," CNBC, 8/29).
