Posted on 08/24/2023 5:19:59 AM PDT by Red Badger
Go woke, go broke. That's what conservatives say, and unfortunately, sometimes it's just rhetoric that doesn't materialize. Still, there are times when the adage proves true.
Enter Dick's Sporting Goods, the woke outdoor company that has prided itself on inserting itself into various cultural battles. As RedState reported, shareholders were greeted with bad news recently when it was revealed that Dick's saw a 23 percent drop in profit over the last quarter.
That sent the company into a freefall. On August 21st, the stock price was $141. Two days later, it was at $108 (for the up-to-the-minute price, click here). That's a dramatic drop for a well-known retail brand with so many years in the game.
The question is, what led us here? According to Dick's own admission, a sharp rise in retail theft has severely hampered profitability.
While we posted another double-digit EBT margin, our Q2 profitability was short of our expectations due in large part to the impact of elevated inventory shrink, an increasingly serious issue impacting many retailers.
That's more of a symptom than a root cause, though. The sudden onslaught of flash mob robberies and brazen shoplifters didn't just materialize for no reason, and I've got a pretty good idea of how we ended up here.
Dick's has long prided itself on being at the forefront of the push for "Diversity, Equity, and Inclusion," which is just a fancy phrase for when a company wastes money paying do-nothings to push far-left policies within the broader culture. It's all about showing that a company is fighting for "justice" and is "giving a voice" to the whinest, most entitled members of its workforce.
Unfortunately for corporations that went down that path, the bill for their activism is now coming due. Nothing is disconnected from the culture, and when Dick's decided to go all-in on being woke, that didn't happen in a vacuum. Rather, the company fed into a far-left behemoth that actively sought to change laws surrounding bail and shoplifting. The result has been anarchy, where criminals can walk into a store, clean out an entire section, and walk out with little fear they will be prosecuted.
This is what happens when corporations decide to insert themselves into the culture wars. For its part, Dick's was at the forefront of banning gun sales following the Parkland shooting, as if doing so would have any impact at all on mass shootings. By 2019, the company had fully invested in a DEI department and made it a centerpiece of its corporate strategy.
The consequences of that have been a 23 percent drop in profitability due to the abuse of policies the company either directly or indirectly supported. So do I feel sorry for Dick's? Not in the least. I think they should continue to enjoy the fruits of their labor to the fullest.
Are they selling “tuck friendly” jock straps?
Dicks is learning that erections have consequences.
There's no reason to support a company that gives us the finger. Same with beer... we still drink beer but NOT Bud Light.
Long time boycotter here since they stopped gun and ammo sales. Hope they go down.
“Corporate executives have a fiduciary duty to act in the best interests of their stock holders.”
That’s a valid statement - about 40 years ago. Same applies to our congress critters to have a duty to act in the best interests of their constituents, but they don’t. It’s a sign of the times, a sign of our declining culture, a sign of our heading for the sewer much quicker than did the Roman Republic.
Yes, stock holders should sue the execs as well as voters should impeach their reps, but none of this will ever happen.
never shopped there and never will
most stockholders are blackrock funds ...
Exactly, overpriced clothing store
Bass Pro, on the other hand, is awesome.
A real outdoor store, they even detuned my compound bow from 65 to 45 lb draw weight, for free, yeah, they have a guy that works the bow shop counter, just had to ask, ince
Democrat/Communists in America prefer this over Liberty.
That’s the problem with Communists ......
They do the “from each according to his ability...” part okay, they just never get the “...to each according to his need.” part right......................
Remember..... they pulled selling guns and ammo a long time ago.
Any Diving places around you? they will fill your Paintball canisters usually.
Good.
Haven’t been in a Dick’s since the early 1990’s.
They were an early-entry corporate gun banner.
Unemployment is super low, wages are up, and people are spending money like crazy. What recession?
“Back when they virtue signaled out of the gun business they were selling off all their ammo at a loss.”
I haven’t been to Dick’s in many years. I just checked the web-page for the Dick’s near me, however, and was surprised to see that it still stocks rifles and ammunition.
Sears did have tools, but people don't fix or do much in the way of mechanical hobbies anymore... They just set about and play with their phones.
But they are, since most of the shares are owned by institutions or investment banks that demand high DEI scores instead of profits, and will dump the holdings of any corporations that don't prioritize ideology over returns.
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