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 the company grappled with weaker performance at its recently acquired Foot Locker banner. Revenue totaled $5.59 billion, below the $5.65 billion forecast. Shares fell 19.83% in premarket trading to $142.65.
The company reduced its full-year non-GAAP EPS guidance to a range of $11.00 to $12.00, down from the prior outlook of $13.50 to $14.50. Consolidated net sales guidance for the full year was narrowed to between $21.9 billion and $22.2 billion. DICK'S business segment profit is now projected at $1.54 billion to $1.60 billion, or 10.6% to 10.9% of net sales, while Foot Locker is expected to post a loss of $80 million to $40 million.
Comparable sales at DICK'S rose 4.9% in the quarter, outpacing the broader industry by roughly 200 basis points. For fiscal 2025, net sales grew 5.0% year-over-year to $14.11 billion, with comparable sales up 4.5% and gross margin expanding by 43 basis points to 36.33%. Non-GAAP EPS reached $14.58, a 3.8% increase from the prior year.
The company now projects Foot Locker's pro forma comparable sales to decline between 2% and flat, following a 3.6% drop in the second quarter and an operating loss of $31.9 million. DICK'S holds approximately 9% market share in the $140 billion U.S. sporting goods market, having gained nearly 50 basis points of share in 2025.
DICK'S operates 630 traditional stores, 41 House of Sport locations, 52 DICK'S Field House stores, and 169 specialty concept locations across 47 states and Washington, D.C. The company plans to open roughly 14 additional House of Sport stores in fiscal 2026, ending the prior year with 35 locations. Omni-channel sales accounted for approximately 70% of fiscal 2025 revenue, with stores enabling over 90% of total sales and fulfilling more than 80% of online orders.
Loyalty programs remain a key driver, with ScoreCard covering about 30 million athletes and contributing over 75% of sales. ScoreCard Gold, with roughly 8 million members, generates more than 50% of sales. A new paid membership tier, ScoreCard+, launched in July 2026. Vertical brands, including CALIA, DSG, and VRST, represented about 13% of total sales in 2025 and delivered 700 to 900 basis points higher margins than national brands.
Executive Chairman Ed Stack noted that marketplace pressures intensified during the quarter, particularly at Foot Locker, but emphasized that the company is investing through current turbulence rather than pulling back. Lauren Hobart, Chief Executive, reiterated the company's commitment to its four strategic pillars as it navigates the challenges.
