DICK'S Sporting Goods reported second-quarter 2026 net sales of $5.59 billion, up 53.2% year-over-year but below the $5.65 billion consensus estimate. Adjusted earnings per share came in at $3.53, missing analyst expectations of $3.78 and declining from $4.38 a year earlier.
The company’s core DICK'S business posted a 4.9% increase in comparable sales, driven by higher average ticket sizes and transaction volumes, while total sales rose 5.6%. Foot Locker’s pro forma comparable sales fell 3.6%, contributing $1.74 billion to consolidated revenue. Gross margin contracted to 34.06%, down 300 basis points year-over-year, though DICK'S business margins improved by 79 basis points. Non-GAAP operating income totaled $453.3 million, or 8.11% of sales, with the DICK'S segment generating $485.2 million in operating income, representing 12.6% of sales.
Selling, general and administrative expenses surged 65% to $1.43 billion, reflecting costs tied to the Foot Locker acquisition. Inventory levels stood at $5.57 billion, while cash and equivalents totaled $914 million. Return on equity over the last twelve months reached 21%, with a market capitalization of $16.05 billion and a trailing P/E ratio of 17.42.
Shares fell 19.83% in premarket trading to $143.77, extending declines from a 52-week high of $244.38. The company lowered its full-year non-GAAP EPS guidance to a range of $11 to $12, down from the prior $13.50 to $14.50. Comparable sales growth for the core business was maintained at 2.5% to 4%, but operating margin expectations for DICK'S were reduced to 10.6% to 10.9%, from 11% to 11.4% previously.
Foot Locker’s outlook was also revised, with full-year pro forma comparable sales now expected to decline 2% to flat, and operating losses projected between $80 million and $40 million. Cost synergies from the acquisition remain on track at $100 million to $125 million.
Store expansion continued in the quarter, with five new House of Sport locations opened and eight Field House stores launched. The company plans to open about 14 House of Sport stores and 20 Field House locations in 2026. Fast Break stores surpassed the back-to-school target, reaching approximately 250 locations globally, with plans to expand to 300 to 350 by year-end.
DICK'S also highlighted progress in its loyalty programs, with ScoreCard connecting with roughly 30 million active athletes and the new ScoreCard+ tier priced at $99 annually. Executive Chairman Ed Stack noted that pricing investments were intended to strengthen long-term positioning, while CEO Lauren Hobart emphasized the company’s commitment to its four strategic pillars: omnichannel experience, product assortment, brand engagement and corporate culture.
