DICK'S Guidance Cut Drags NIKE Shares Down

Earnings

โดย Insider Monkey·

Summary · why it matters

DICK'S Sporting Goods' second-quarter report, which missed Wall Street estimates and included an unexpected forecast cut, sent its shares plunging up to 31% and dragged NIKE, Lululemon, and On Holding down with it. The core DICK'S business showed strength with net sales up 53% year-over-year to $5.59 billion, partly boosted by the 2026 FIFA World Cup and the addition of Foot Locker, while legacy comparable sales grew 4.9%. However, the Foot Locker segment, which DICK'S is integrating, saw pro forma comparable sales decrease 3.6%, and management cited a more promotional athletic footwear market that pressured margins. As a result, DICK'S reduced its full-year operating income guidance from $1.69-1.81 billion to $1.45-1.55 billion and cut adjusted EPS projection to $11.00-12.00, about 19% below Wall Street's $14.20 estimate. Since Foot Locker is a key wholesale partner for NIKE, the news is seen as a real-time report on NIKE's product demand, and NIKE shares fell nearly 3%, adding to a decline of over 75% from its late-2021 high. Institutional positioning diverged, with hedge fund ownership in DICK'S rising from 48 to 52 funds, while NIKE saw a drop from 71 to 56 funds.