Dick's Sporting Goods Inc. said on Tuesday that it will stop selling hunting rifles and ammunition at 125 of its stores, replacing the gear with merchandise it believes will sell better at those locations.
Stack said the changes will be completed late this year and that the company is considering a multiyear initiative depending on how the stores perform.
The in-store sections will be replaced with "merchandise categories that can drive growth", he said. The move follows the company's ban on assault-style weapons past year in the wake of the Parkland shooting.
As of February 2, 2019, the company operated 729 Dick's Sporting Goods stores in 47 states, 94 Golf Galaxy stores in 32 states, and 35 Field & Stream stores in 16 states.
On Tuesday, Dick's reported that sales fell to $2.49 billion in the fourth quarter, ended February 2, from $2.66 billion the year ago which had an extra week, beating estimates of $2.48 billion.
Sales at Dick's Sporting have been pressured in the a year ago after it tightened its gun sales policy, banning sales of assault-style rifles and high-capacity magazines to people under 21 after a high school shooting in Parkland, Florida in February 2018.
It reported net income of net income of $102.6 million, or $1.07 a share. Adjusted per-share earnings came to $1.22, ahead of Street estimates of $1.06.
The Coraopolis, Pennsylvania-based company also posted revenue of $2.49 billion in the period, exceeding Street forecasts. "For 2018, we delivered earnings near the high end of our expectations, which represents an 8% increase over previous year". Shares in the sporting goods store fell 11.2 percent in Tuesday trading to close at $34.61. Seven analysts surveyed by Zacks expected $2.48 billion. Dick's shares fell as much as 11 percent, the most since August 2017, to $34.45 in NY trading.