Dick’s Sporting Goods Inc. (NYSE: DKS) shares fell 11.9% in premarket trading after the retailer reported second-quarter results that missed analyst expectations and issued a fiscal 2026 guidance range well below consensus.
The company posted adjusted earnings of $3.53 per share for the quarter ended Aug. 2, down from $3.78 expected by analysts. Revenue totaled $5.59 billion, below the $5.65 billion estimate. Year-over-year revenue rose 53.2%, driven by the inclusion of the Foot Locker acquisition completed in September 2025. Comparable sales at Dick’s core business grew 4.9%, while Foot Locker’s proforma comparable sales declined 3.6%. Adjusted operating income fell to 8.1% of net sales from 13.0% a year earlier, reflecting the dilutive impact of 9.6 million shares issued for the acquisition.
Fiscal 2026 guidance was reduced materially. Adjusted EPS is now expected between $11.00 and $12.00, versus a consensus of $14.20, implying a 19% shortfall at the midpoint. Revenue guidance was set at $21.9 billion to $22.2 billion, with a midpoint of $22.05 billion compared to the $22.35 billion consensus. Dick’s comparable sales growth is projected at 2.5% to 4.0%, while Foot Locker’s proforma comparable sales outlook was lowered to a range of -2.0% to 0.0%. Operating income guidance was also reduced for both businesses.
Executive Chairman Ed Stack attributed the miss and guidance cut to increasingly promotional conditions in athletic footwear and apparel, particularly affecting Foot Locker due to its exposure to legacy footwear silhouettes and dependence on product launches and retro styles. The company emphasized competitive pricing actions taken to protect market share amid softening demand.
