Stocks for Dick’s Sporting Goods tumble, bringing gun makers down with it
By Christen Smith
The New York Stock Exchange in an undated photo. (Photo: Richard Drew/Associated Press)
Stocks for Dick’s Sporting Goods tumbled 17.9 percent Tuesday after the company blamed tightened profit margins on the promotional retail environment post-election.
Chairman and CEO Ed Stack’s forecast over the weekend that earnings “will be painful for awhile” — at least through the rest of its fiscal year — sent gun manufacturers American Outdoor Brands and Vista Outdoor into decline, too.
AOBC counts Smith & Wesson as the top earner in its growing portfolio of “rugged outdoor brands.”
Vista owns more than three dozen companies in firearms, ammo and shooting accessory companies, including Savage Arms, Stevens, Federal Premium, Speer and American Eagle. It’s stock dropped 1.5 percent compared with AOBC’s 1.7 percent decline Tuesday.
Dick’s reported second quarter net income of $112.4 million, 23 percent higher than 2016. Net sales increased 9.6 percent to exceed $2.2 billion.
“In this very competitive and dynamic marketplace, we were able to deliver a significant increase in our bottom line from last year,” Stack said. “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.”
Vista and Sturm, Ruger and Company reported double digit losses