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Dick’s Sporting Goods Inc. DKS -2.17% said weaker sales of Under Armour Inc. apparel and a decision to pull back from the hunting business dragged on the retailer’s latest quarterly results.
Comparable-store sales fell 4%, Dick’s said. Not adjusting for the 53rd week last year, the company’s same-store sales declined 1.9%.
The weaker-than-expected results bucked a trend in the retail sector, which largely has benefited from a surge in consumer spending fueled by a booming economy.
Consumer confidence for August, measured by the Conference Board’s consumer confidence index, was the highest its been in about 18 years. That sentiment, along with other factors, has powered companies such as Walmart Inc. WMT -0.45% and Target Corp. TGT 1.07% to their best quarterly results in more than a decade.
Dick’s said part of the company’s sales problems were a result of Under Armour’s decision to sell in more stores including Kohl’s. Under Armour declined to comment.
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https://www.wsj.com/articles/dicks-says-under-armour-new-gun-sales-policy-dragged-on-results-1535565173