Recently, a number of companies have decided to stop selling firearms in the wake of the Parkland school shooting and at the center of the controversy is Dick's Sporting Goods. The sporting goods company announced they would no longer carry assault-style weapons or high-capacity magazines and raised the minimum age for a customer to buy a gun to 21 from 18.
<img src="https://media.8ch.net/file_store/d7b4f2dd318fb9e4894bcaa7e03efafd5eafb62bcf3ef38def3c3a2a5e06e7c8.jpg" style="max-height:640px;max-width:360px;">
<span style="margin-top:15px;rgba(42,51,6,0.7);font-size:12px;">Dave Nelson | Dreamstime</span>
The move has led to severe repercussions as the company's stock tumbled to the lowest point in four months since the ban took effect. The sporting goods company has also been suffering from overstocking and high discounts as competitors like Nike and Amazon are expanding into their market space.
Related coverage: <a href="https://thegoldwater.com/news/20233-Michigan-Second-Lawsuit-Against-Dick-s-Sporting-Goods-Over-New-Gun-Age-Rule">Michigan - Second Lawsuit Against Dick’s Sporting Goods Over New Gun Age Rule</a>
Executives at Dick's found out that Parkland school shooter Nikolas Cruz bought some of his many guns from their store, although he did not use them in his attack. The ban on assault weapons was meant to be a sign of solidarity with student protesters calling for gun control but it seems the move has backfired on the company.
This isn't the first time they instituted a ban after a school shooting. Following the 2012 Sandy Hook shooting the company also banned assault weapons but a few months later brought them back. Dick's says this time the ban is permanent. The company released a statement saying:
"Thoughts and prayers are not enough. We support and respect the Second Amendment, and we recognize and appreciate that the vast majority of gun owners in this country are responsible, law-abiding citizens. But we have to help solve the problem that’s in front of us."
Related coverage: <a href="https://thegoldwater.com/news/20054-20-Year-Old-Sues-Dick-s-and-Walmart-for-Age-Discrimination-in-Selling-Guns">20-Year-Old Sues Dick’s and Walmart for ‘Age Discrimination’ in Selling Guns</a>
CEO of Dick's Edward Stack said in an earnings call, "There’s going to be some pushback and we expected that. There are going to be the people who don’t shop us anymore for anything." Stack also predicted the decision is "not going to be positive from a traffic standpoint and a sales standpoint."
Since then, the company's shares have fallen 7.3 percent after going up 13 percent in 2018. The company also failed to hit projected sales of $2.74 billion for this quarter coming in at just $2.66 billion. The sporting goods company is set to open 19 new stores this year and has hopes that doing so will bolster their waning image.
Tips? Info? Send me a message!