Dick’s Sporting Goods’ decision to remove guns was big factor in earnings beat: CFRA
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Dick’s Sporting Goods Inc. reported earnings and sales that beat expectations on Tuesday, which CFRA’s Camilla Yanushevsky attributes, in part, to the retailer’s pullback on gun sales.
The results sent shares soaring more than 18% in Tuesday trading, en route to the third biggest one-day percentage gain since Dick’s Sporting Goods DKS, +18.62% went public.
Same-store sales growth of 6% was the best showing since 2013 , according to the athletic retailer.
Following the Feb. 14, 2018 mass killing at Marjory Stoneman Douglas High School in Parkland, Fla., Dick’s Sporting Goods stopped selling guns to customers below the age of 21.
During a media tour for his book, “It’s How We Play the Game,” Dick’s Sporting Goods Chief Executive Edward Stack talked about the decisions the company has made with relation to its gun business. Moreover, he announced that the company had scrapped $5 million in assault rifles that were still in stock.