Dick's Sporting Goods destroyed $5 million worth of assault rifles, CEO Ed Stack says

was it a write off of inventory for tax purposes, requiring the goods be destroyed?
 
was it a write off of inventory for tax purposes, requiring the goods be destroyed?

nope. Straight virtue signal.
I listened to an interview with him yesterday where he explained his motives and their process.
 
Virtue signalling, corporate edition. He hurts no one except (maybe) his own shareholders. Dick's has nothing that I wouldn't buy elsewhere anyway, preferably from a local family-owned business. Just my $0.02 worth.
 
Meh I don't care what they do with their inventory. I don't like the virtue signaling BUT... They named their store after a male body part, and they're pandering to customers stupid enough to make an issue of that. Just you wait, they'll learn they picked the wrong side.
 
In recognition of this valiant Tribute to Wokeness, I hereby vow to increase my post-2017 spending at Field of Dicks by 300% in the next year.
 
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I had supper with folks last night that were talking about this. I wondered what a stirred up their interest in this.


The CEO wrote a book all about their decision to drop guns. He's been making the rounds of talk radio doing promotion.
 
No publicity is bad publicity. Dick’s is getting free air time, so the $5 million is less than buying commercials on all these outlets - Dick’s already wrote off the customers that were interested in firearms, their marketing is now focused on non firearms customers.
 
Five million at Dick’s retail prices, it actually cost them a lot less, and like @12151791 said, the suburban spandex buyers see it as a positive. They could morph into an LL Bean clone and do well.
 
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I literally don't know anyone who shops at Dick's. They all shop at Academy... even tennis balls are overpriced at Dick's.

EDIT: I don't care how much money dumb companies waste; have at it!
 
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Guys, y'all are missing the point. They are simply thinking of the children here - the CEO has said that. Good for them! It makes me happy - now I can stroll down the aisles at Dick's and not be reminded of endangered kids while I shop for Bangladeshi and Cambodian made Nike apparel...
 
The CEO was actually claiming $250 million in total losses from the decision. Not a single talking head called him out on it. BUT, I could see the number getting that high if you roll re-fitting the store display areas into the cost.
 
Somewhere in the article (IIRC) it mentioned they pulled the guns from their stores after SSandy Hook in 2012, and that it was after Parkland that they decided to nix MSR sales permanently and add extra-legal restrictions.

If so, they purchased at 2012 wholesale prices -- probably higher than 2017 to 2019 retail prices - and then threw it all away.

Now that's a winning business strategy.
 
Meh I don't care what they do with their inventory. I don't like the virtue signaling BUT... They named their store after a male body part, and they're pandering to customers stupid enough to make an issue of that. Just you wait, they'll learn they picked the wrong side.
Yes! Dick's is sexist, toxic masculinity and all. They should protest. Actually, some right wingers masquerading as screaming liberals should protest. ;)
 
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It's all smoke and mirrors for the cameras. No one throws away $5 million. No way it was $5 million cost, it was retail price, big difference. Also I'd bet they got a major tax write off. They very likely got an under the table gov't kickback too.
 
Yet they will still be looted during the Boogaloo.
 
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When someone tells you they don’t like you, or what you stand for, believe them.


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Exactly. They told conservatives we were deplorables in 2016. And now, 3yrs later, we are, alternately, Nazis and Putin puppets.

Speaking of my Russian overlord, here's Putin on multiculturalism:


No wonder the Dems and RINOs are so anti-Russia. In addition to the resurgence of the Russian Orthodox Church, the country is headed by someone who is against the globalist multicultural agenda.
 
Guys, y'all are missing the point. They are simply thinking of the children here - the CEO has said that. Good for them! It makes me happy - now I can stroll down the aisles at Dick's and not be reminded of endangered kids while I shop for Bangladeshi and Cambodian made Nike apparel...

Don’t forget the football and rugby gear that they sell to those concussed children. Gotta think of them too!
 
It's all smoke and mirrors for the cameras. No one throws away $5 million. No way it was $5 million cost, it was retail price, big difference. Also I'd bet they got a major tax write off. They very likely got an under the table gov't kickback too.

This is what I think is true in the end

https://mksh.com/obsolete-inventory-book-vs-tax-write-off/

. Destroying it – This is typically the last approach you would take. The deductions associated are more minimal than if the previous 2 approaches are taken. In addition, the IRS requires you to document the before and after of the inventory that is destroyed.
 
The inventory in question was not “obsolete” in the way @Mike Overlay article describes. It was not obsolete or unsellable.

I’m not a CPA, but I’d think that inventory taken off the shelf and purposefully destroyed would be treated the same as something taken for personal use. The value would be charged against owner’s equity rather than expenses. IOW, not a “write off”.


 
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"Destroyed"....ok.
Some disgruntled Dick's worker has a '92 Honda Civic full of "destroyed" rifles and a wallet that hurts to sit on.
 
The CEO wrote a book all about their decision to drop guns. He's been making the rounds of talk radio doing promotion.

I don't read...or listen too well. So he screwed him self over 3 times on me.
 

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The inventory in question was not “obsolete” in the way @Mike Overlay article describes. It was not obsolete or unsellable.

I’m not a CPA, but I’d think that inventory taken off the shelf and purposefully destroyed would be treated the same as something taken for personal use. The value would be charged against owner’s equity rather than expenses. IOW, not a “write off”.




I worked in 2 different auto dealerships, Mazda and then GM/Cadi, that the parts dept would destroy perfectly good parts/engines/body panels after inventory. Manufacturers wouldnt allow for a parts return mainly due to age.

If they pulled this inventory from sales "years" ago, I bet the suppliers definitely didnt want it back.

Just because he said it that way, doesnt mean its not a media spin to virtue signal.

( all my opinions, based on zero insider knowledge of Dicks)
 
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