DICK’S LOST $250 MILLION AFTER DESTROYING GUNS AND HIRING LOBBYISTS – We recently reported on Ed Stack’s decision to destroy $5 million in firearms. This decision came after the late 2018 decision to stop selling hunting gear.
Recently, in a video interview with CBS Sunday morning, Stack admitted to a loss in revenue of “about a quarter billion.”
Regardless, all of Stack’s decisions for Dick’s Sporting Goods do align with both the company’s 2018 Annual Report and Stack’s anti-gun and anti-hunting “visionary” sentiments.
“The hunting category is a sizable part of our business; however, there has been an overall slowdown in sales in this category since the announcement of our new firearms policy. Despite this, we continue to believe that implementing this new policy is the right decision for our athletes and our communities. In fact, if we could go back and revisit it, we would still make the same choice today.”
“Negative publicity or perceptions involving the Company or our brands, products, vendors, spokespersons, or marketing and other partners may negatively impact our reputation and adversely impact our ability to attract and retain customers and employees.”
“For example, after the Company announced changes to its policy relating to the sale of firearms and accessories and announced its support for certain gun reform measures in the first quarter of 2018, the Company’s hunt business experienced an accelerated decline.”
Publicly, analysts predict that Ed Stack’s support and aggressive anti-2nd Amendment agenda will continue to cost shareholders. Especially since gun sales are up within the past year.
At a minimum, this is very poor timing for Dick’s. At most, these decisions could be catastrophic for the business.
How do you predict the chips will fall for Dick’s Sporting Goods?