Dick’s Sporting Goods‘ decision to stop selling guns hasn’t hurt its bottom line.
The Pittsburgh-based retailer released its third-quarters earnings and raised its year-end outlook this morning. Revenues were $1.96 billion and adjusted earnings per share were 52 cents, while same-store sales grew 6%.
The company’s stock was $46.39, up $6.96 or 17.65%, in mid-morning trading.
But Dick’s also had strong first- and second-quarter earnings, reported in May and August respectively. The company has repeatedly beat Wall Street expectations, even as the sporting goods giant chose in wake of numerous acts of headline-grabbing fatal gun violence to stop selling weapons.
For a brand dedicated to sports enthusiasts—a category that includes hunters by definition and those who strongly support Second Amendment rights by association—the move was a potential disaster.
The stance came in waves. The first part came after the Sandy Hook, Connecticut, school shooting in 2012; the company would no longer sell modern sporting rifles at its Dick’s stores. Shortly after the Parkland, Florida, school shooting, Dick’s made several changes, including nixing modern sporting rifles at its 35 Field & Stream stores, stopping to sell high-capacity magazines and raising the minimum age to buy a firearm from 18 to 21.
“We saw increases in both average ticket and transactions, as well as growth across each of our three primary categories of hardlines (CQ), apparel and footwear,” Stack said in the earnings statement today. “As we head into the holiday season, we remain very enthusiastic about our business, and we are pleased to increase our full year sales and earnings outlook for the third time this year.”
Among the elements experts are crediting for the boost are sales of Kanye West‘s Yeezy line and the company’s e-commerce strategy.
Founded in 1948, Dick’s Sporting Goods has 733 Dick’s stores, 95 Golf Galaxy stores, and 27 Field & Stream stores, as of November 2, the company said.