A poor start to the day for Dick’s Sporting Goods shares. DKS stock plunged over 9% in the morning. Since then, some of those losses have been paired but the stock remains down over 5% with a long day still ahead.

The sporting goods retailer announced that it performed worse than analysts expected in Q2 of this year.

Dick’s Sporting Goods Shares Plunge

Dick’s Sporting Goods (NYSE:DKS) is blaming its poor results on the athleisure brand Under Armour (NYSE:UAA), which expanded into lower-priced retailers such as Kohl’s.

The result is that Dick’s is losing out on sales as it tries to maintain selling its stock at the higher prices. 

The company has been affected so much so that overall sales have plummeted more than 4% during Q2, despite the expectation being only 0.6%.

CEO Ed Stack hinted that by Under Armour expanding into other areas, his company has been hurt:

Assault Rifles

Another reason the company may have lost business in the last quarter was its decision to stop selling assault rifles and high-capacity gun magazines. It also barred sales of any guns to customers under 21 years of age. The company predicted that this decision may lose customers, but equally felt it had the power to draw a new customer base to its stores. 

The incentive for this decision was February’s massacre at Parkland high-school in Florida.

Despite predicting a new footfall of customers, Dick’s only managed $2.18 billion in revenue when $2.24 billion was expected.

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But Online Sales Are Up

On a more positive note though, Dick’s online sales increased 12% during the quarter, which only highlights the importance of e-retailing in today’s marketplace.

More and more major department stores and multi-brand outlets are closing as the likes of Amazon (NASDAQ:AMZN) monopolize the retail space and consumers look to online shopping to fulfill their needs.

Amazon will be the next hurdle for Dick’s as it has added sportswear to its site and is working with major sports brand Nike (NYSE:NKE) that, as it so happens, is experiencing soaring gains today.

Featured Image: Freepik