Dick’s Sporting Goods reported fiscal second quarter earnings that fell short of Wall Street expectations, prompting a significant sell-off in the company’s shares. The stock declined 30% in trading, marking its worst performance since 2023. The company attributed the miss partly to challenging conditions in the athletic footwear and apparel sector.
The Dick’s banner itself showed strength, posting a 4.9% increase in comparable sales for the quarter with growth spread across multiple categories and boosted by strong World Cup-related sales. However, the Foot Locker division, which Dick’s acquired in 2025 for $2.4 billion, proved problematic. Foot Locker comparable sales declined 3.6% during the period, leading management to revise its full-year outlook for that business to a range of flat to down 2%. The Dick’s business is still expected to grow between 2.5% and 4%.
In response to Foot Locker’s underperformance, the company lowered its overall annual guidance. The net sales outlook was reduced from a range of $22.1 billion to $22.4 billion to between $21.9 billion and $22.2 billion. Consolidated operating income guidance was also cut, from a previous range of $1.69 billion to $1.81 billion down to $1.45 billion to $1.55 billion.
For the quarter ended Aug. 1, Dick’s reported net income of $315 million, or $3.50 per share, compared with $381 million, or $4.71 per share, in the prior-year period. Adjusting for one-time items, the company reported $3.53 per share. Sales increased to $5.59 billion from $3.65 billion year-over-year. The company also noted receiving $59 million in tariff refunds during the quarter along with $2.1 million in related interest income.
Chief Executive Officer Lauren Hobart stated the company remained confident in Dick’s core business and its long-term prospects at Foot Locker despite taking a more cautious near-term stance. The Foot Locker acquisition was intended to expand international presence and strengthen competitive positioning within the broader sportswear market.
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