New York, NY – Dick's Sporting Goods (DKS) shares plummeted by a staggering 30% on Tuesday, marking the retailer's worst trading day since 2023, after it reported fiscal second-quarter earnings that fell significantly short of Wall Street's expectations. The sporting goods giant pointed to a "challenging athletic footwear and apparel marketplace" as a primary factor impacting its performance, particularly within its Foot Locker business.
Despite robust comparable sales growth of 4.9% for its core Dick's stores, buoyed by "broad-based growth" across categories and a boost from the World Cup, the retailer's overall outlook was significantly dimmed by the struggles of Foot Locker. The acquired brand saw a 3.6% decline in comparable sales for the quarter.
In light of these headwinds, Dick's Sporting Goods has revised its full-year outlook. The company now anticipates Foot Locker's comparable sales to range from flat to a 2% decline, a downgrade from previous projections. While the core Dick's business is still expected to grow between 2.5% and 4%, the consolidated net sales outlook for the year has been lowered to a range of $21.9 billion to $22.2 billion, down from an earlier forecast of $22.1 billion to $22.4 billion.
Furthermore, the company has reduced its consolidated operating income outlook to a range of $1.45 billion to $1.55 billion, a significant cut from the prior estimate of $1.69 billion to $1.81 billion.
For the fiscal second quarter ended August 1, Dick's reported adjusted earnings per share of $3.53, missing analysts' expectations of $3.76. Revenue came in at $5.59 billion, also falling below the LSEG-surveyed estimate of $5.65 billion. Net income for the period was $315 million, or $3.50 per share, a decrease from $381 million, or $4.71 per share, in the same period last year. Sales did show year-over-year growth, climbing from $3.65 billion in the prior-year period to $5.59 billion this quarter.
CEO Lauren Hobart commented on the results, stating, "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." The company also noted receiving $59 million in tariff refunds and $2.1 million in related interest income during the quarter.
The earnings report underscores the ongoing efforts to revitalize Foot Locker, which Dick's acquired for $2.4 billion in 2025. The acquisition was intended to expand its international presence and bolster its competitive standing in the booming sportswear market. The turnaround strategy continues amidst a challenging retail environment, as highlighted by the latest financial results.
A Dick's Sporting Goods retail store is seen on May 15, 2025, in Austin, Texas. (Credit: Brandon Bell | Getty Images)
