Dick’s Stock Tumbles To Conservatives’ Delight
by Tyler Durden
ZeroHedge.com
Tue, 03/13/2018
Two weeks after Dick’s Sporting Goods infuriated Second Amendment supporters when the sporting goods retailer announced it would end sales of assault rifles, its stock is plunging and conservatives will hardly shed a tear.
In early trading, shares of Dick’s tumbled as much as 7.3% to just above $30.19, its biggest intraday decline since mid-November, slashing in half the 13% gain YTD.
What is odd is that the drop in DKS stock has nothing to do with the halt in assault rifle sales, and everything to do with the general lackluster state of the US consumer, and specifically its second consecutive – and bigger than expected – sales decline.
Adjusted EPS were $1.22 in Q4, missing estimates of $1.24, but it was the big miss (and drop) in sales which hit $2.66 billion – well short of the $2.74 billion consensus – that have sent the stock into a tailspin. Meanwhile, the closely watched same-store sales fell 2%, more than the expected drop of 1.2%. This was the second consecutive quarterly decline, prompting many shareholders to bail on the stock.
The Rest…HERE
