Dick’s Sporting Goods tumbles on guidance cut, Q2 miss

Investing.com -- Dick's Sporting Goods Inc. (NYSE: DKS) shares have plunged 11.9% premarket after the sporting goods retailer missed second-quarter expectations and slashed its full-year outlook due to challenging conditions in the athletic footwear and apparel marketplace.

The company reported adjusted EPS of $3.53 for the second quarter, missing the analyst consensus of $3.78 by $0.25. Revenue reached $5.59 billion, falling short of the $5.65 billion estimate and up 53.2% YoY, primarily due to the inclusion of the acquired Foot Locker business. The Dick's business delivered 4.9% comparable sales growth, while proforma comparable sales for the Foot Locker business declined 3.6%.

For fiscal 2026, Dick's issued adjusted EPS guidance of $11.00 to $12.00, significantly below the analyst consensus of $14.20. The midpoint of $11.50 represents a 19% shortfall versus expectations. The company expects revenue of $21.9 billion to $22.2 billion, with the midpoint of $22.05 billion below the $22.35 billion consensus.

"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."

The company maintained its Dick's business comparable sales outlook of 2.5% to 4.0% growth but lowered the Foot Locker business proforma comparable sales outlook to a range of -2.0% to 0.0%. Operating income guidance was reduced for both businesses.

Dick's reported second quarter operating income of 8.1% of net sales on an adjusted basis, down from 13.0% in the prior year period. The current year results include the dilutive impact of 9.6 million shares issued in connection with the Foot Locker acquisition completed in September 2025.

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