DICK’S Sporting Goods (NYSE: DKS) reported adjusted earnings per share of $3.53 for the second quarter of fiscal 2026, missing analyst expectations of $3.78, as its acquisition of Foot Locker continued to weigh on results. Consolidated revenue totaled $5.59 billion, below the $5.65 billion forecast.
The company reduced its full-year non-GAAP EPS guidance to a range of $11.00 to $12.00 from a prior outlook of $13.50 to $14.50. Consolidated net sales guidance was narrowed to $21.9 billion to $22.2 billion. For the Foot Locker segment, DICK’S projected a business segment loss of $80 million to $40 million in fiscal 2026, with pro forma comparable sales expected to decline 2% to flat, down from prior growth expectations.
The core DICK’S business reported a 4.9% increase in comparable sales for the quarter, outpacing the broader industry by approximately 200 basis points. For fiscal 2025, DICK’S-branded net sales reached $14.11 billion, a 5.0% year-over-year increase, while comparable sales rose 4.5%. Gross margin expanded by 43 basis points to 36.33%, and non-GAAP EPS grew 3.8% to $14.58.
DICK’S shares fell 19.83% in premarket trading to $142.65 following the results. The company cited intensified marketplace pressures during the quarter, though Executive Chairman Ed Stack noted that demand remained intact, attributing softness to inventory clearing and a shift toward new and innovative products. "I do not think this is a demand issue," Stack said. "We are investing through the current market turbulence rather than pulling back."
The Foot Locker integration remains a key focus, with DICK’S projecting medium-term cost synergies of $100 million to $125 million. The combined entity now operates approximately 3,195 stores worldwide, with 2,423 locations in North America, 559 in Europe, and 122 in Asia Pacific. For fiscal 2026, DICK’S expects its core business segment profit to range between $1.54 billion and $1.60 billion, representing 10.6% to 10.9% of net sales.
DICK’S maintains a dominant U.S. market share of about 9% in the $140 billion sporting goods sector, with a footprint of 630 traditional stores, 41 House of Sport locations, and 52 DICK’S Field House stores. The company plans to open roughly 14 additional House of Sport locations in fiscal 2026, ending the prior year with 35 such stores.
Omni-channel sales accounted for about 70% of fiscal 2025 revenue, with omni-channel athletes spending more than twice as much as single-channel customers. The ScoreCard loyalty program covers approximately 30 million athletes, including 8 million Gold members who generate over 50% of sales. Vertical brands, including CALIA and DSG, contributed roughly 13% of total sales in 2025, generating margins 700 to 900 basis points higher than national brands.
