Shares of Adidas and Puma declined on Tuesday after Dick’s Sporting Goods lowered its full-year outlook, citing softness at its recently acquired Foot Locker unit.
Adidas (ETR: ADS) fell 2%, while Puma (ETR: PUM) dropped 1%. Dick’s Sporting Goods (NYSE: DKS) tumbled 15% after reducing its guidance. Nike (NYSE: NKE) shares were down 2.5% in premarket trading.
The retailer attributed its outlook cut to weaker-than-expected performance at Foot Locker, which it acquired earlier this year. Despite strong sales during the World Cup period, Dick’s said the Foot Locker unit’s challenges overshadowed overall gains.
The selloff in Dick’s shares weighed on sportswear manufacturers, as the retailer serves as a key distribution channel for athletic apparel and footwear brands. Analysts noted that Foot Locker’s struggles raise concerns about broader demand trends in the sporting goods sector and potential inventory pressures for suppliers.
The market reaction underscored the interconnected risks facing sportswear companies and their retail partners amid shifting consumer spending patterns.
