Shares of Adidas and Puma fell on Tuesday after Dick’s Sporting Goods slashed its full-year guidance, citing softness at its recently acquired Foot Locker unit.
Adidas stock dropped 2% in Frankfurt trading, while Puma shares declined 1%, extending losses tied to broader concerns over retail demand for athletic apparel and footwear. Dick’s Sporting Goods, a key distribution partner for major brands, tumbled 15% after lowering its outlook. The retailer attributed the revision to weaker-than-expected performance at Foot Locker, which it acquired in a $1.1 billion deal earlier this year.
The guidance cut overshadowed Dick’s Sporting Goods’ sales growth during the World Cup period, highlighting persistent challenges in the sporting goods sector. Nike, a major supplier to both Dick’s and Foot Locker, also fell 2.5% in pre-market trade, reflecting broader sector pressure. Analysts noted that inventory management issues at Foot Locker may signal broader demand softness, particularly as consumers prioritize essential spending amid economic uncertainty.
The declines underscore the interconnected risks for athletic brands reliant on retail partners for distribution, with Dick’s Sporting Goods serving as a critical channel for brands like Adidas and Puma in the U.S. market.
