The loss is about what he anticipated, but that still has to sting
It’s been nearly two years since Dick’s Sporting Goods announced they would no longer sell guns to anyone under the age of 21 in their stores.
The announcement angered many, prompting them to threaten to stop shopping at any of the stores over 850 locations.
It appears the backlash wasn’t just empty words.
Dick’s CEO Ed Stack revealed the policy change cost the company $250 million during an interview about his decision.
His decision came with the hopes of helping to help reduce instances involving gun-related crimes.
Losing millions won’t change his mind
Stack also decided that the company would destroy $5 million worth of rifle inventory they had left. They were turned into scrap metal because he believed no one should be allowed to own them.
“I said, ‘You know what? If we really think these things should be off the street, we need to destroy them,'” he told CBS during an interview.
The 2018 annual report for Dick’s Sporting Goods shows that Stack was aware of the significant impact these changes were having on the company and had no intention of changing.
“The hunting category is a sizeable part of our business; however, there has been an overall slowdown in sales in this category since the announcement of our new firearms policy,” the report read. “Despite this, we continue to believe that implementing this new policy is the right decision for our athletes and our communities. In fact, if we could go back and revisit it, we would still make the same choice today.”
It remains to be seen what these changes will cost the company as time goes on.
Stack’s aware the changes will have negative impacts on the company, costing shareholders.
Still, he claims they’re dedicated to doing the right thing with an ‘unwavering commitment.’
“We move forward as the clear leader in the sporting goods retail industry with an unwavering commitment to doing the right thing for our shareholders, athletes, and communities.”