DICK’S cuts profit outlook as Foot Locker and promotions weigh on margins

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Dick's Sporting Goods reported a 53% year-over-year increase in net sales to $5.6 billion in Q2, driven partly by its Foot Locker acquisition. Foot Locker's net sales were $1.7 billion, but Dick's lowered its proforma comparable sales outlook for Foot Locker to -2.0% to 0.0% due to challenging market conditions. Net income declined 17% to $315 million, with earnings per share dropping 19% to $3.53. The company received $59 million in tariff refunds.

Dick's Sporting Goods shares fell 28% after cutting its annual sales and adjusted operating-income forecasts due to weak performance at Foot Locker. Foot Locker's comparable sales dropped 3.6% in Q2, while Dick's stores saw a 4.9% increase. The company now expects FY26 net sales of $21.9B-$22.2B, down from $22.1B-$22.4B, and adjusted EPS of $11.00-$12.00, down from $13.50-$14.50.

Dick's Sporting Goods (DKS) shares fell 27.1% after reporting Q2 revenue of $5.59B and adjusted EPS of $3.53, missing expectations. The company cut its full-year guidance, citing weaker footwear and apparel promotions. Comparable sales at Foot Locker declined 3.6%, while Dick's stores rose 4.9%. The stock is down 35.5% YTD and 45.3% from its 52-week high.

Dick's Sporting Goods (DKS) reported Q2 earnings below expectations: EPS $3.53 vs. $3.78 consensus, revenue $5.59B vs. $5.65B. The stock fell 27.6% intraday. Management cut full-year guidance, citing underperformance at Foot Locker, a recent acquisition. Core DICK's business grew 4.9% in comp sales, but Foot Locker's operating loss reached $31.9M. Next catalysts include back-to-school performance and Q3 earnings.

DICK'S Sporting Goods stock fell 27% after missing Q2 earnings estimates and cutting full-year guidance due to Foot Locker's weak performance. Q2 adjusted EPS was $3.53 vs. $3.78 expected, with revenue at $5.59B vs. $5.65B projected. Foot Locker's sales declined 3.6%, leading to a revised annual EPS range of $11.00-$12.00, down from $13.50-$14.50. The company plans to close up to 110 Foot Locker stores in 2026.