Dick’s Sporting Goods Inc. (NYSE: DKS) shares tumbled 11.9% in premarket trading after the retailer reported weaker-than-expected second-quarter earnings and slashed its fiscal 2026 outlook.
The company posted adjusted earnings per share of $3.53, missing the analyst consensus of $3.78 by $0.25. Revenue totaled $5.59 billion, below the $5.65 billion estimate, though up 53.2% year-over-year due to its acquisition of Foot Locker. Comparable sales at Dick’s own business rose 4.9%, while Foot Locker’s proforma comparable sales declined 3.6%. Operating income fell to 8.1% of net sales on an adjusted basis, down from 13.0% in the prior-year period.
The Foot Locker acquisition, completed in September 2025, added 9.6 million diluted shares to the current year’s results. Dick’s maintained its comparable sales growth guidance for its core business at 2.5% to 4.0%, but lowered the outlook for Foot Locker’s proforma comparable sales to a range of -2.0% to 0.0%.
For fiscal 2026, Dick’s reduced its adjusted EPS guidance to $11.00–$12.00, implying a 19% shortfall against the consensus of $14.20. Revenue guidance was cut to $21.9 billion–$22.2 billion, below the $22.35 billion estimate. Operating income guidance was also lowered for both businesses.
Executive Chairman Ed Stack attributed the weaker performance to increased promotional activity in athletic footwear and apparel, which disproportionately affected Foot Locker due to its reliance on legacy footwear and retro product launches.
