The dick sporting good and field and stream is using the Security Center platform to monitor over 18, cameras across stores, and manage cameras and doors at its headquarters. The leading retailer is always on the lookout to enhance its operations. Staff would also spend a lot of time travelling to stores and searching through video to validate facts or pull content. Moving to IP with Security Center has been hugely beneficial to our organization.
Search: Dick's Sporting Goods Hunting for a Way to Grow Again The retailer's decision to ban firearm sales to anyone under 21 hurt sales in related departments.
The backlash against the retailer was so great that double-digit comparable sales declines in hunting and related categories dragged down the performance of the entire company.
But rather than admit it made a mistake and reverse its policy decisions, Dick's is instead removing the hunt category altogether at 10 stores where the category is seriously underperforming and replacing it with something else, like baseball equipment.
Image source: Getty Images. Not only did gun owners call for a boycott of the retailer, but major gun manufacturers including Mossberg, Springfield Armory, and MKS Supply stopped doing business with it. While the general state of ill health in the firearms industry has masked just how deeply the policy mistakes are costing Dick's, we can see that the bad numbers are accelerating.
Comparable sales were down 0. Even when accounting for the extra selling week in , comps were down 2. Hunting's reach is long More telling is the double-digit declines experienced in the hunting category, because customers who would have purchased firearms also would have bought other outdoor gear.
CEO Ed Stack says the declines in hunting and hunting-related electronics were responsible for a basis-point drop in comps in the most recent quarter. Dick's gun-sales policies are having such an outsized impact now because the fall hunting season is upon us, and demand for firearms, particularly long guns, is at its height.
For example, where FBI background checks for the purchase of handguns were about double those of long guns in July, in November long gun background checks surpassed those of handguns.
Focusing on more profitable business Yet Dick's is standing by its decision, pointing out that firearms and electronics are low-margin products, so despite the steep decline in sales it was still able to post a basis-point increase in merchandise margins for the third quarter.
Dick's Sporting Goods is committed to its policy of limiting the availability of firearms to its customers, even if it means sacrificing sales in related departments. Net sales continue to fall as a result, though it is making the sales it does record more profitable.
That could make next year's results look better by comparison, and means its stock may have more room to rise.
After 20 years of patrolling the mean streets of suburbia, he hung up his badge and gun to take up a pen full time. Having made the streets safe for Truth, Justice, and Krispy Kreme donuts, he now patrols the markets looking for companies he can lock up as long-term holdings in a portfolio.
His coverage reflects his passion for motorcycles, booze, and guns though typically not all exercised at the same time , but his writing also covers the broader sectors of consumer goods, technology, and industrials.
So follow along as he tries to break down complex topics to make them more understandable and useful to the average investor.