Dick’s Sporting Goods Shares Plunge 30% Following Weak Earnings and Foot Locker Outlook Cut

Shares of Dick’s Sporting Goods plummeted 30% during Tuesday’s trading session—marking the retailer’s worst single-day performance since 2023—as the company reported fiscal second-quarter results that fell short of Wall Street expectations.

The disappointing performance was largely driven by continued struggles within the Foot Locker business, which Dick’s acquired for $2.4 billion in 2025. While the core Dick’s Sporting Goods brand demonstrated resilience, the company was forced to slash its full-year guidance in light of a “challenging athletic footwear and apparel marketplace.”

Missed Expectations

For the period ending Aug. 1, Dick’s reported adjusted earnings per share of $3.53, missing the $3.76 consensus estimate from analysts surveyed by LSEG. Revenue also came in light at $5.59 billion, failing to meet the expected $5.65 billion.

Net income for the quarter totaled $315 million, or $3.50 per share, representing a decline from the $381 million, or $4.71 per share, reported during the same period last year.

A Tale of Two Brands

The company’s quarterly results revealed a stark divergence between its two primary business segments. Dick’s namesake retail stores performed well, posting a 4.9% increase in comparable sales fueled by broad-based growth and strong demand surrounding the World Cup.

However, the Foot Locker business struggled, posting a 3.6% decline in comparable sales. This underperformance led management to revise its outlook for the Foot Locker segment, now expecting full-year comparable sales to range from flat to down 2%.

“While we are taking a more cautious view of the balance of the year, we remain highly confident in the strength of the DICK’S Business and our long-term opportunity at Foot Locker,” said CEO Lauren Hobart in a statement.

Guidance Slashed

The ongoing difficulties at Foot Locker have prompted the company to lower its financial expectations for the remainder of the fiscal year:

• Net Sales Outlook: Reduced to a range of $21.9 billion to $22.2 billion, down from the previous forecast of $22.1 billion to $22.4 billion.
• Operating Income: The consolidated operating income outlook was slashed significantly, moving from a previous range of $1.69 billion–$1.81 billion down to $1.45 billion–$1.55 billion.

Despite these hurdles, the company noted it received a $59 million tariff refund during the quarter, along with $2.1 million in associated interest income.

A Difficult Turnaround

Dick’s Sporting Goods is currently in the midst of a high-stakes effort to revitalize Foot Locker. When the acquisition was announced in May 2025, leadership touted the deal as a gateway to international expansion and a way to better compete in a crowded retail landscape.

However, as the company grapples with the current market volatility, investors are closely watching to see if the firm can successfully execute its strategy to return the Foot Locker business to growth. For more details on the company’s financial position, you can view the full Q2 2026 earnings report.