Shares of Dick’s Sporting Goods soared on Wednesday after reports the company’s first-quarter earnings exceeded expectations, assuaging investors’ fears that its new restrictions on gun sales would hurt profits.
The sporting goods store’s shares surged by 23 percent when markets opened on Wednesday as last quarter’s $1.91 billion in sales exceeded estimates from last year, which had projected $1.88 billion, CNBC reports.
{mosads}While same-store sales reportedly dropped by 2.5 percent due to declines in hunting and electronic sales, investors had worried that the company’s move to stop sales on assault-style weapons would cause greater damage.
Dick’s moved in February to pull the rifles from shelves just days after 17 people were killed in a South Florida high school by a shooter armed with a semi-automatic rifle.
The company also stopped selling high-capacity magazines and banned the sale of all guns to people under the age of 21.