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Dick’s Sporting Goods reported quarterly results that fell short of analyst expectations and cut its forecast for the Foot Locker business, triggering a steep share decline. The update highlights growing pressure in the athletic footwear and apparel market and raises questions about the pace of recovery after Dick’s acquisition of Foot Locker.
Earnings miss and market reaction
Shares of Dick’s plunged about 30% on Tuesday, marking the company’s largest one-day drop since 2023. Investors reacted after the retailer reported adjusted results below Wall Street forecasts and narrowed its outlook for the combined businesses.
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On a per-share basis, Dick’s posted adjusted earnings of $3.53, versus the $3.76 expected by analysts surveyed by LSEG. Revenue came in at $5.59 billion, slightly under the $5.65 billion analysts anticipated.
Quarterly profit and sales details
For the quarter ended Aug. 1, net income was $315 million, or $3.50 per share, down from $381 million, or $4.71 per share, a year earlier. Adjusted for one-time items — including charges tied to the Foot Locker deal — the company reported $3.53 per share.
Reported sales rose to $5.59 billion from $3.65 billion in the prior-year period.
Revised outlook: Foot Locker drags
Dick’s said its own stores delivered positive momentum, with comparable sales up 4.9% for the quarter and “broad-based growth” across categories, helped in part by World Cup–related demand.
By contrast, the Foot Locker segment recorded a 3.6% decline in comparable sales. As a result, Dick’s revised its full-year outlook for Foot Locker to a range of flat to down 2%.
The retailer still expects the Dick’s business to grow between 2.5% and 4%, but trimmed its overall net sales guidance to a range of $21.9 billion to $22.2 billion, down from a prior range of $22.1 billion to $22.4 billion.
Profit guidance and one-time items
Management reduced consolidated operating income guidance to a range of $1.45 billion to $1.55 billion, from an earlier $1.69 billion to $1.81 billion projection.
The company also reported receiving $59 million in tariff refunds during the quarter, plus $2.1 million in related interest income.
Foot Locker acquisition and turnaround effort
Dick’s completed its purchase of Foot Locker in 2025 for $2.4 billion. The company has said the acquisition was intended to expand international reach and strengthen its competitive position.
Management is now working to reposition Foot Locker and return the business to growth. Executives described the wider market for athletic footwear and apparel as challenging and said they were taking a more cautious view for the remainder of the year while remaining confident in the long-term opportunity at both Dick’s and Foot Locker.
