Dick's Sporting Goods stock falls 25% as retailer misses expectations, cites 'challenging' footwear market — SkimNews
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- Dick's Sporting Goods stock plunged more than 25% in morning trading after Q2 adjusted EPS of $3.53 missed the $3.76 analyst estimate, with revenue of $5.59 billion falling short of the $5.65 billion expected, per LSEG data
- Foot Locker comparable sales declined 3.6%, prompting Dick's to cut its full-year Foot Locker outlook to a range of flat to down 2% and lower consolidated net sales guidance to $21.9B-$22.2B from the prior $22.1B-$22.4B
- Dick's also slashed its consolidated operating income outlook to $1.45B-$1.55B, down from the previous $1.69B-$1.81B range
- Dick's core stores posted 4.9% comparable sales growth driven by 'broad-based growth' across categories, including strong results tied to the World Cup
- Net income fell to $315 million ($3.50/share) from $381 million ($4.71/share) in the year-ago period
- CEO Lauren Hobart said the company 'remains highly confident in the strength of the DICK'S Business and our long-term opportunity at Foot Locker' even as it takes 'a more cautious view of the balance of the year'
- Dick's received $59 million in tariff refunds during the quarter plus $2.1 million in related interest income — a buried tailwind the headlines don't lead with
Why it matters: Dick's $2.4 billion Foot Locker acquisition was meant to expand international reach and sharpen competition with rivals, but Foot Locker's 3.6% comparable sales decline and trimmed outlook now drag on the combined business. While Dick's core stores grew 4.9% on World Cup strength, the 25% stock plunge signals investors are losing patience with the Foot Locker turnaround timeline.
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