Dick’s CEO Says Anti-Gun Policy Shrank Company by a ‘Quarter Billion Dollars’

[rangerrebew]

Dick’s CEO Says Anti-Gun Policy Shrank Company by a ‘Quarter Billion Dollars’
Now spending company money lobbying for gun control


Stephen Gutowski - October 9, 2019 5:00 AM

The CEO of Dick's Sporting Goods told CBS News this weekend that his decisions to stop selling certain guns and hire lobbyists to push for new gun bans have cost his company roughly $250 million.

CBS Sunday Morning host Lee Cowan asked Dick's CEO Ed Stack how much his company lost after the retailer decided to stop selling firearms to anyone under the age of 21.

"About a quarter of a billion," Stack replied. "Pretty close."

https://freebeacon.com/issues/dicks-ceo-says-anti-gun-policy-shrank-company-by-a-quarter-billion-dollars/

[Applewood]

I guess this guy didn't hear what happened to Penneys when that company took up the perverts' cause. 

[PeteS in CA]

I guess this guy didn't hear what happened to Penneys when that company took up the perverts' cause.

Further down in the linked article:

That is consistent with Stack's previous statements on the losses associated with his decision. In the company's 2018 annual report, he wrote that gun sales were a "sizeable part" of Dick's business and that his push for the company to support new gun control laws significantly hurt that business. However, this did not make him reconsider his decision to use company resources to lobby for gun control and to remove certain guns from stores.

"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 annual 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."

They expected what happened, but did it because woke. If Dick's (or its parent, if any) is publicly traded its stockholders should sue for this gross violation of fiduciary obligation.

[Applewood]

...

They expected what happened, but did it because woke. If Dick's (or its parent, if any) is publicly traded its stockholders should sue for this gross violation of fiduciary obligation.

Nah.  the company will just start closing down stores and putting employees out of work to save money. 

We talk a lot about brick an nd mortar stores going under and attribute it to the rise of online shopping and maybe unsafe shopping malls.  But many retailers are destroying themselves through their own bad business decisions such as taking up causes that turn off the buying public.

I used to like Dicks Sporting Goods, shopped at the one in the nearby mal often, but if this is the way the company is going, I won't lose sleep if it ends up like Sears. 

[Cyber Liberty]

Further down in the linked article:

They expected what happened, but did it because woke. If Dick's (or its parent, if any) is publicly traded its stockholders should sue for this gross violation of fiduciary obligation.

Dick's is traded on NASDAQ.

[PeteS in CA]

...
I used to like Dicks Sporting Goods, shopped at the one in the nearby mal often, but if this is the way the company is going, I won't lose sleep if it ends up like Sears.

There's a Dick's somewhere not too far from me, but I'm not sure exactly where. There are plenty of competitors for me to choose from.

Dick's is traded on NASDAQ.

Thanks! Their stockholders really should sue them. Their action clearly hurt the business and they clearly knew in advance that it would. I'm no lawyer (nor do I ...) but the validity of this cause of action seems rather simple and clear to me. If Stack didn't like the store selling guns he should have moved on to some more woke company rather than torpedoing his current employer.

[Cyber Liberty]

There's a Dick's somewhere not too far from me, but I'm not sure exactly where. There are plenty of competitors for me to choose from.

Thanks! Their stockholders really should sue them. Their action clearly hurt the business and they clearly knew in advance that it would. I'm no lawyer (nor do I ...) but the validity of this cause of action seems rather simple and clear to me. If Stack didn't like the store selling guns he should have moved on to some more woke company rather than torpedoing his current employer.

There is a fiduciary responsibility of the board on behalf of the Shareholders, but I know even less than you do about it, like, how is "irresponsible" defined?  Deemed by whom, SEC?  What are the remedies, shipping money to the US Treasury by fines (this helps the injured parties not one little bit)? 

Probably most importantly, has a Board of Directors ever been successfully sued for being reckless with the Shareholders' assets?  I'm sure it's happened somewhere, I'd like to know how it played out for the Shareholders.

[IsailedawayfromFR]

Why is this guy still employed?

Bragging about reducing the value of the company?

[Cyber Liberty]

Why is this guy still employed?

Bragging about reducing the value of the company?

I have to assume there's been no revolt against him because they're all Woke, too.

[verga]

I don't care how big the company is 250 million is a huge chunk of change. The share holders can not be happy about this.

[Cyber Liberty]

I don't care how big the company is 250 million is a huge chunk of change. The share holders can not be happy about this.

Yes, that number is staggering.

[DCPatriot]

How in the hell is he supposed to 'sell' THAT to the stockholders?

Won't anybody learn from the Chick-fil-A boycott/harassment debacle?   

Their individual locations average more than twice the gross receipts of other fast food franchises, and as with The Lord - on the 7th day they rested.        They are still closed on Sundays.

They should do a 180...  become the dependable source for all firearms...the COSTCO of firearms.   

[Cyber Liberty]

How in the hell is he supposed to 'sell' THAT to the stockholders?

Won't anybody learn from the Chick-fil-A boycott/harassment debacle?   

Their individual locations average more than twice the gross receipts of other fast food franchises, and as with The Lord - on the 7th day they rested.        They are still closed on Sundays.

They should do a 180...  become the dependable source for all firearms...the COSTCO of firearms.   

The only think I can think of, is the stockholders are a bunch of mindless, leftist, bleepin' sheep who fancy themselves "woke."

[InHeavenThereIsNoBeer]

The only think I can think of, is the stockholders are a bunch of mindless, leftist, bleepin' sheep who fancy themselves "woke."

1) What are the shareholders going to do?  If they sue for damages, where is the money going to come from?  And how much impact would that have on the value of the stock they own?  [Some of the largest holders own about a quarter billion dollars in Dick's stock, EACH].

2) The stock is up > 26% YTD.  I suppose it might be more if they had not lost the equivalent 3% of one year's revenue, but 26% ain't bad.  I don't know if that rise is due to the market having factored in the losses earlier (previous shareholders getting hit by the new policy, current holders benefitting from a recovery), but 26% ain't bad.  If I had the stones to play in this market, I'd probably be willing to take that sort of gain.

[montanajoe]

....its stockholders should sue for this gross violation of fiduciary obligation.

Problem is the shareholders would not be able to show a breach or damages. The stock did not tank after the announcement, its been around 39 bucks and expected to go to 42 in the next year, they just announced they plan to hire 8000 temp workers for the Christmas season be tough to make the argument.....

[verga]

How in the hell is he supposed to 'sell' THAT to the stockholders?

Won't anybody learn from the Chick-fil-A boycott/harassment debacle?   

Their individual locations average more than twice the gross receipts of other fast food franchises, and as with The Lord - on the 7th day they rested.        They are still closed on Sundays.

They should do a 180...  become the dependable source for all firearms...the COSTCO of firearms.   

That would require common sense and logic, something that he appears to be lacking.

[Slide Rule]

Quarter Billion Dollars?

Good job Dick.

:)

[thackney]

1) What are the shareholders going to do?  If they sue for damages, where is the money going to come from?  And how much impact would that have on the value of the stock they own?

Exactly.  This would be suing yourself.

[IsailedawayfromFR]

Exactly.  This would be suing yourself.

what's wrong with going after the personal fortune of the CEO?

He's worth $1bn.


https://www.forbes.com/profile/edward-stack/#30c0ce266bbe

[IsailedawayfromFR]

And he goes again with this line:

“It’s just ridiculous. So many people have said to me, ‘you know, if we do what you want to do, it’s not going to stop these mass shootings.’ And my response is, ‘you’re probably right, it won’t.’ But if we do these things and it saves one life, don’t you think it’s worth it?”

Customers At Local Dick’s Sporting Goods React To CEO’s Decision To Destroy $5M Worth Of Assault Rifles
https://pittsburgh.cbslocal.com/2019/10/08/pittsburghers-react-to-dicks-sporting-goods-decision-to-destroy-assault-rifles/

If that logic was taken into other places, why not ban all cars in case one can save a single life?

This is liberal logic to the extreme:  Destroy our way of life as it may save a single life.

To Mr. Stack:  NO

[thackney]

And he goes again with this line:

“It’s just ridiculous. So many people have said to me, ‘you know, if we do what you want to do, it’s not going to stop these mass shootings.’ And my response is, ‘you’re probably right, it won’t.’ But if we do these things and it saves one life, don’t you think it’s worth it?”

Customers At Local Dick’s Sporting Goods React To CEO’s Decision To Destroy $5M Worth Of Assault Rifles
https://pittsburgh.cbslocal.com/2019/10/08/pittsburghers-react-to-dicks-sporting-goods-decision-to-destroy-assault-rifles/

If that logic was taken into other places, why not ban all cars in case one can save a single life?

This is liberal logic to the extreme:  Destroy our way of life as it may save a single life.

To Mr. Stack:  NO

Rather insane to believe if someone wants to buy a gun, and his store doesn't sell it, the buyer won't go somewhere else.

[libertybele]

How in the hell is he supposed to 'sell' THAT to the stockholders?

Won't anybody learn from the Chick-fil-A boycott/harassment debacle?   

Their individual locations average more than twice the gross receipts of other fast food franchises, and as with The Lord - on the 7th day they rested.        They are still closed on Sundays.

They should do a 180...  become the dependable source for all firearms...the COSTCO of firearms.   

 

[txradioguy]

Why is this guy still employed?

Bragging about reducing the value of the company?

He does seem rather proud of presiding over the losses they've incured.

Perhaps he still as a job becasue like with Ruger...there's been inroads made by shareholder groups pushing the anti-gun agenda.

[txradioguy]

How in the hell is he supposed to 'sell' THAT to the stockholders?

Won't anybody learn from the Chick-fil-A boycott/harassment debacle?   

Their individual locations average more than twice the gross receipts of other fast food franchises, and as with The Lord - on the 7th day they rested.        They are still closed on Sundays.

They should do a 180...  become the dependable source for all firearms...the COSTCO of firearms.   

@DCPatriot no they won't learn.  All Liberals and the woke scolds learn from things like that is to double down and try harder next time.  They never accept defeat...they look at it as a lessons learned on what to do better next time.

[goatprairie]

@DCPatriot no they won't learn.  All Liberals and the woke scolds learn from things like that is to double down and try harder next time.  They never accept defeat...they look at it as a lessons learned on what to do better next time.

You are correct...liberals never learn. During the last Iraq War Hollyweird churned out anti-war flick  after anti-war flick. They all bombed miserably. People didn't want to watch them.
Whether people agree with a particular military action or not, few Americans want to see the American military depicted as evil.
The truth is the opposite.  If Hollyweird had made a movie about the Marines taking Fallujah and killing a lot of jihadis, it would have made a lot of money.