Shares for Dick’s Sporting Goods fell over 20 percent in pre-market trading on Tuesday morning after the retailer missed Wall Street expectations and lowered its yearly guidance for Foot Locker.
The Pittsburgh-based company reported net income in the second quarter of fiscal 2026 of $315 million, or $3.50 per share, down from $381 million, or $4.71 per share, the year prior. Adjusting for one-time items, including its Foot Locker acquisition, Dick’s reported $3.53 per share. Net sales in the quarter rose 53.4 percent to $5.59 billion from $3.65 billion in the year-ago period.
These results fell short of Wall Street expectations. Analysts were expecting net sales of $5.64 billion and earnings per share of $3.76, according to Yahoo Finance.
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By segment, the company noted that the Dick’s business — which includes Dick’s Sporting Goods, Golf Galaxy, Going Going Gone! and Public Lands banners, as well as GameChanger — had net sales of $3.85 billion, up from $3.65 billion in the second quarter of 2025. The company said that its Dick’s business segment delivered 4.9 percent comp sales growth, driven by broad-based growth across categories, including strong results from the 2026 FIFA World Cup, and growth in average ticket and transactions.
As for its Foot Locker segment — which includes the Foot Locker, Kids Foot Locker, Champs Sports, WSS and Atmos banners — net sales in the quarter were $1.74 billion. Proforma comps for the Foot Locker business segment declined 3.6 percent, impacted by challenging conditions in the athletic footwear marketplace, the company noted.
Executive chairman Ed Stack explained in a statement that as the quarter progressed, conditions across portions of the athletic footwear and apparel marketplace became increasingly promotional. “We took action to remain competitively priced to protect and grow our leadership position,” Stack noted.
The executive added that this environment had a “more significant impact” on the Foot Locker business given its greater exposure to legacy footwear silhouettes and greater dependence on footwear launch and retro product. Not only were there fewer launches in the second quarter, but those launches performed below both industry and company expectations, Stack said.
As a result, the company is taking “a more cautious view” of the balance of the year. Looking ahead, the company now expects net sales in fiscal 2026 to be between $21.9 billion and $22.1 billion, with earnings per share between $10.94 and $11.94. This is down from the company’s previous guidance of net sales for the year between $22.1 billion and $22.4 billion, with earnings per share between $13.27 and $14.27.
By segment, the company expects net sales for its Dick’s business to be between $14.5 billion and $14.7 billion in fiscal 2026, which remains unchanged. Its Foot Locker business is expected to be between $7.4 billion and $7.5 billion, which is down from its previous guidance of sales between $7.6 billion and $7.7 billion for the year.
“While these near-term dynamics have led us to revise our expectations for 2026, our confidence in the long-term opportunities ahead for both Dick’s and Foot Locker remains unchanged,” Stack added.
