Dick’s Sporting Goods Inc. shares tumbled 14.1% in pre-market trading on Tuesday after the retailer reported second-quarter results that missed expectations and slashed its full-year guidance, citing challenges integrating the recently acquired Foot Locker business.
The sporting goods chain posted diluted non-GAAP earnings per share of $3.53, missing the consensus estimate of $3.78. Revenue totaled $5.59 billion, slightly below the forecast of $5.65 billion. The company’s operating margin contracted to 7.9% from 12.4% in the same period a year earlier, reflecting higher integration costs and restructuring expenses tied to the Foot Locker acquisition.
Full-year 2026 GAAP EPS guidance was reduced to a range of $10.94 to $11.94, down sharply from the prior outlook of $13.50 to $14.50 and well below the analyst consensus of approximately $14.20. The stock fell to a new 52-week low of $154.14, extending an eight-session losing streak.
The Foot Locker segment contributed an operating loss of $31.9 million, with comparable sales declining 3.6% on a pro forma basis. The acquisition, completed in September 2025 for $2.4 billion, involved the issuance of 9.6 million shares, further pressuring earnings through dilution. JPMorgan lowered its price target on Dick’s Sporting Goods to $245 from $270, citing the weaker outlook and integration headwinds.
The sell-off contrasted with broader equity benchmarks, as the S&P 500, Dow Jones, and Nasdaq posted modest gains during the session, indicating the decline was driven by company-specific factors rather than macroeconomic or sector-wide trends.
