Dick's Sales Slide

Source: zerohedge.com

After announcing the end of selling assault rifles the value of their stock has fallen. It has lost about 7.3% after gaining 13% year to date prior to the drop.

Gun advocates are pointing to the company's decision to end assault rifle sales as the cause for the drop. There is another factor that could point to the decrease. The overall stagnation in the retail market.

Dick's missed their EPS target in the fourth quarter of last year and also missed their estimate of sales. EPS was $1.22 and the estimate was $1.24, sales came in at $2.66 billion and the estimate was $2.74 billion. The malaise has not just affected Dick's but overall retail was affected.

Source: zerohedge.com

The announcement likely didn't cause this drop but it probably will have some affect on future sales. It seems odd that a company that caters to the outdoors type would profit from taking an anti gun stance.