Dick’s Sporting Goods reported fiscal second quarter results that fell short of analyst expectations, prompting a significant market reaction. The company’s stock declined 30% during trading on Tuesday, marking its worst performance since 2023. The disappointing results and reduced guidance reflected ongoing challenges in the athletic footwear and apparel sector.
The Dick’s banner of the business demonstrated resilience with comparable sales increasing 4.9% for the quarter, supported by broad-based growth across merchandise categories and strong results from World Cup-related merchandise. However, this strength was offset by weakness in the Foot Locker division, which experienced comparable sales declines of 3.6%. The Foot Locker performance prompted management to revise its full-year outlook for that business to a range of flat to down 2%.
In response to the Foot Locker challenges, Dick’s reduced its overall financial guidance. The company lowered its full-year net sales outlook to a range of $21.9 billion to $22.2 billion, down from the previous range of $22.1 billion to $22.4 billion. Consolidated operating income guidance was also reduced to a range of $1.45 billion to $1.55 billion from the prior range of $1.69 billion to $1.81 billion. The Dick’s banner still expects growth between 2.5% and 4%.
For the period ended August 1, the company reported net income of $315 million, or $3.50 per share, compared with $381 million, or $4.71 per share, in the year-ago period. On an adjusted basis excluding one-time items, Dick’s reported $3.53 per share. Net sales increased to $5.59 billion from $3.65 billion in the prior year period. The company also received $59 million in tariff refunds during the quarter along with $2.1 million in related interest income.
CEO Lauren Hobart stated the company remained confident in the Dick’s business and its long-term prospects at Foot Locker despite the near-term cautious outlook. Dick’s acquired Foot Locker for $2.4 billion in 2025 with plans to expand internationally and strengthen competitive positioning in the sporting goods retail market.
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