Dick's Sporting Goods Shares Sink After Q2 Miss and Full-Year Guidance Cut

Dick’s Sporting Goods Inc. (NYSE:DKS) shares fell 11.9% in pre-market trading after the retailer reported weaker-than-expected second-quarter results and sharply reduced its fiscal 2026 outlook amid increasingly promotional conditions in the athletic footwear and apparel market.

Adjusted earnings per share came in at $3.53, missing the analyst consensus of $3.78 by $0.25. Revenue reached $5.59 billion, below expectations of $5.65 billion, although sales increased 53.2% year-on-year, largely reflecting the addition of the acquired Foot Locker business.

Comparable sales at the Dick’s business increased 4.9%, while pro forma comparable sales at Foot Locker declined 3.6%.

Fiscal 2026 Earnings Forecast Falls Well Short of Expectations

Dick’s now expects adjusted earnings per share of between $11.00 and $12.00 for fiscal 2026, substantially below the analyst consensus of $14.20.

The midpoint of the new range, at $11.50 per share, is around 19% below Wall Street expectations.

Full-year revenue is forecast at between $21.9 billion and $22.2 billion. The midpoint of $22.05 billion is also below the consensus estimate of $22.35 billion.

“As the quarter progressed, conditions across portions of the athletic footwear and apparel marketplace became increasingly promotional, and we took action to remain competitively priced to protect and grow our leadership position,” said Ed Stack, Executive Chairman. “This environment had a more significant impact on the Foot Locker Business given its greater exposure to legacy footwear silhouettes and greater dependence on footwear launch and retro product.”

Foot Locker Outlook Lowered as Promotional Pressure Builds

Dick’s maintained its comparable sales forecast for its namesake business, continuing to expect growth of between 2.5% and 4.0%.

The outlook for Foot Locker was reduced, however, with pro forma comparable sales now expected to range from a decline of 2.0% to flat performance.

Operating income guidance was also lowered for both businesses as promotional activity and pricing pressure weigh on profitability.

The contrasting forecasts highlight the challenges facing the recently acquired Foot Locker operation, particularly given its greater reliance on footwear launches, retro products and established footwear styles.

Operating Margin Contracts Following Foot Locker Acquisition

Adjusted operating income represented 8.1% of net sales during the second quarter, down significantly from 13.0% in the corresponding period last year.

The current-year results also reflect the dilutive impact of 9.6 million shares issued as part of the Foot Locker acquisition, which was completed in September 2025.

Although the core Dick’s business continues to generate positive comparable sales growth, weaker Foot Locker performance, greater promotional activity and reduced profit expectations have increased concerns over the retailer’s near-term earnings trajectory and the integration of its major acquisition.

Dick’s Sporting Goods