DICK'S Sporting Goods reported a disappointing second quarter and sharply lowered parts of its full-year outlook, highlighting that weakness in athletic footwear is proving more persistent than expected. The biggest problem is Foot Locker, acquired for about $2.4 billion last year, whose comparable sales fell 3.6% in the quarter; DICK'S now expects Foot Locker's full-year comparable sales to range from flat to down 2%, reversing its earlier expectation for growth. Total sales rose about 53% to $5.59 billion, largely due to the acquisition, but missed estimates, while adjusted EPS came in at $3.53, below expectations, and net income declined to about $315 million from $381 million a year earlier. Core DICK'S comparable sales rose 4.9%, but total comparable sales increased only 2.1%. Management cut its 2026 sales outlook to $21.9-$22.2 billion from $22.1-$22.4 billion, reduced adjusted EPS guidance to $11-$12, and lowered operating-income guidance to $1.45-$1.55 billion from $1.68-$1.81 billion, citing bloated industry inventories, heavier promotions, and cautious consumer spending.
Dick’s Sporting Goods IncDICK'S cut full-year sales, EPS, and operating-income guidance due to weak footwear demand and Foot Locker's underperformance.
Foot Locker's comparable sales fell 3.6% and full-year outlook was cut to flat/down 2%, reflecting persistent weakness in athletic footwear.
