
Dick's In the Crosshairs as Gun Sales Continue to Disappoint
Dick's Sporting Goods (DKS) - Get Report shares crashed 23% on Tuesday following the company's second quarter earnings miss, which it blamed on weak results from its hunting segment.
But the truth is, while gun sales have experienced a sharp decline since President Donald Trump took office, the hunting segment has been in a downtrend since the 1980s, according to the U.S. Fish and Wildlife Service.
Despite that, the wildlife recreation activities segment experienced a 3% growth rate from 2006 to 2011, with Americans spending a total of nearly $34 billion.
Dick's said that weakness in its hunting segment will force the company to offer discounts in the back half of the year. Dick's also lowered its profit expectations.
"By design, we will be more promotional and increase our marketing efforts for the remainder of the year, as we will aggressively protect our market share," CEO Edward Stack said in a statement.
Gun sales have suffered since Trump, a gun advocate, took office. Gun manufacturer Smith & Wesson, now American Outdoor Brands (AOBC) - Get Report , for example, was sold for $45 million this year, after being purchased for $112 million 10 years ago.
Sturm Ruger & Company Inc. (RGR) - Get Report reported a 22% decline in year over year net sales to $132 million recently.
Dick's Sporting Goods traded down 21% to $27.62 midday Tuesday.
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