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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 it has been in about 18 years.
Sentiment - Factors - Companies - Walmart - Inc
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.
Sales - Dick - Decision - Policy - Gun
Also hurting sales was Dick’s decision to tighten its policy on gun sales after 17 people were killed in a February shooting at a Parkland, Fla., high school. The retailer halted sales of any firearms to people under age 21 at all of its 845 Dick’s and Field & Stream stores and stopped selling assault-style weapons at Field & Stream.
Under Armour’s results accounted for three percentage points of declining sales at Dick’s, while weakness in the hunting and electronics categories contributed two percentage points of decline. When excluding Under Armour and the hunting and electronics business, comparable-store sales fell 1%.
Challenges - Health - Core - Business - Sales
“Notwithstanding these challenges, the health of our core business is relatively strong, and we’re confident sales trends will improve next year as these headwinds are expected to subside,” Dick’s Chief Executive Edward Stack said on a call with analysts to discuss the results.
Shares of Dick’s, up 24% for the year...
(Excerpt) Read more at: WSJ
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