Dick’s Sporting Goods Slashes 2026 Outlook as Foot Locker Drags Results, Shares Plunge — BigGo Finance

Dick’s Sporting Goods (DKS) shares were on track for their worst single-day decline in nearly three years on Tuesday after the retailer cut its full-year profit and sales outlook, citing an increasingly promotional athletic footwear and apparel market that hit its newly acquired Foot Locker business harder than expected.

The stock tumbled as much as 18% in premarket trading, with early session losses of around 13% to $157.45, following second-quarter results that missed Wall Street estimates on both the top and bottom lines.

The company now expects fiscal 2026 adjusted earnings per share of $11.00 to $12.00, down sharply from its prior guidance of $13.50 to $14.50 and well below the FactSet consensus of $14.28. Net sales are projected to land between $21.9 billion and $22.2 billion, versus the previous range of $22.1 billion to $22.4 billion and consensus of $22.35 billion.

Operating income guidance was also reduced to $1.45 billion to $1.55 billion, down from $1.69 billion to $1.81 billion guided earlier in the year.

“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,” Executive Chairman Ed Stack said in a statement. “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.”

Stack noted that not only were there fewer product launches during the quarter, but those that did occur performed below both industry and company expectations. “As a result, we are taking a more cautious view of the balance of the year,” he added.

For the three months ended Aug. 1, the retailer reported adjusted earnings per share of $3.53, down from $4.38 a year earlier and below the $3.76 to $3.78 analysts had projected. Net sales rose 53% to $5.59 billion, driven largely by the inclusion of Foot Locker, but still came in short of the $5.64 billion to $5.65 billion consensus.

Net income fell to $315 million, or $3.50 per share, from $381 million, or $4.71 per share, in the prior-year period.

The core Dick’s business delivered comparable sales growth of 4.9%, driven by what the company described as broad-based growth across categories, including strong results tied to the FIFA World Cup. That figure decelerated from the 6% comp growth posted in the first quarter.

Foot Locker, however, was the clear drag. Pro forma comparable sales for that segment declined 3.6% during the quarter, prompting the company to lower its full-year outlook for the business to a range of flat to down 2%, from its prior expectation of 1.5% to 3% growth.

Adjusted operating income for the quarter came in at 8.1% of net sales, a significant contraction from 13.0% a year earlier. The results also reflected the dilutive impact of approximately 9.6 million shares issued in connection with the Foot Locker acquisition, which closed in September 2025.

CEO Lauren Hobart acknowledged the near-term pressures but sought to emphasize the company’s underlying strength. “While we are taking a more cautious view of the balance of the year, we remain highly confident in the strength of the DICK’S Business and our long-term opportunity at Foot Locker,” she said. “Our second quarter results reflect the power of our athlete-centric strategy, our broad and differentiated assortment, strong brand partnerships, and continued focus on profitable growth opportunities.”

Hobart highlighted the company’s significant investment around the FIFA World Cup, saying the team delivered “exceptional results” tied to the event.

The company also disclosed it received $59 million in tariff refunds and $2.1 million in related interest income during the quarter.

As of Aug. 1, 2026, Dick’s operated 3,104 store locations across its combined businesses.

The guidance cut comes as a notable reversal from analyst expectations just a week earlier. Oppenheimer had told clients it expected the second quarter to at least meet the company’s plan and potentially trigger an upward revision to the full-year outlook.

Prior to Tuesday’s decline, DKS shares had already fallen 9.4% year-to-date, lagging the broader S&P 500. The stock closed Monday’s session down 2.1% before the premarket selloff intensified.

The broader athletic retail landscape has shown signs of strain. Nike (NKE) reported a year-over-year revenue decline in its fiscal fourth quarter in June, while Academy Sports and Outdoors (ASO) and Lululemon Athletica (LULU) are scheduled to report their latest results next month.

On Stocktwits, retail sentiment trended into “extremely bullish” territory amid elevated message volume, even as shares fell sharply. Some users speculated that selling pressure would intensify once the market opened, while others argued the stock had become oversold.

Dick’s acquired Foot Locker for $2.4 billion in 2025, saying at the time it planned to use the deal to expand its international presence and better position itself against competitors. The integration has since proven more challenging than anticipated, with the Foot Locker business now weighing on consolidated results as legacy footwear silhouettes face heightened promotional activity across the industry.