Dick's Sporting Goods stock falls 20% as retailer misses expectations, cites 'challenging' footwear market
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Dick's Sporting Goods reported Q2 adjusted EPS of $3.53 vs. $3.76 expected and revenue of $5.59B vs. $5.65B expected, sending shares down roughly 20% in morning trading.
- Foot Locker posted a 3.6% comparable sales decline, prompting Dick's to revise its Foot Locker outlook to flat to down 2% for the year.
- Dick's lowered full-year net sales guidance to $21.9B-$22.2B (from $22.1B-$22.4B) and trimmed consolidated operating income guidance to $1.45B-$1.55B from $1.69B-$1.81B.
- The core Dick's business still grew comparable sales 4.9%, driven by "broad-based" strength including World Cup-related demand.
- CEO Lauren Hobart said the company remains "highly confident" in the long-term opportunity at both Dick's and Foot Locker despite the more cautious near-term view.
- The company collected $59 million in tariff refunds plus $2.1 million in related interest income during the quarter, a detail absent from most headlines.
Why it matters: The 20% stock drop reflects not a Dick's core problem — which grew comps 4.9% on World Cup demand — but Foot Locker's 3.6% comp decline and a roughly $240M-$360M cut to consolidated operating income guidance, signaling the $2.4B Foot Locker acquisition remains a drag on margins.
Ask SkimNews
