DICK'S Sporting Goods reported second-quarter results on August 25. The core DICK'S business grew comparable sales 4.9%. Foot Locker, which DICK'S acquired last year, posted a 3.6% proforma comparable sales decline. The company lowered its full-year outlook for Foot Locker and cut its operating income outlook for both segments. The stock fell about 31% on the day.
Consolidated net sales for the 13 weeks ended August 1, 2026 were $5.587 billion, up 53.2% from $3.647 billion a year earlier, almost entirely because Foot Locker is now in the numbers. Profitability moved the other way. Operating income fell to 7.9% of net sales from 12.4%, a 451 basis point decline. Net income was $315 million against $381 million. Earnings came in at $3.50 per diluted share on a GAAP basis and $3.53 non-GAAP, down from $4.71 and $4.38, with the 9.6 million shares issued for the Foot Locker acquisition diluting the result. Analysts had modeled $3.78 per share on $5.65 billion in sales.
What DICK'S said went wrong
"As the quarter progressed, conditions across portions of the athletic footwear and apparel marketplace became increasingly promotional, and we took action to remain competitively priced," Executive Chairman Ed Stack said in the release. "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 our expectations."
The Foot Locker segment covers the Foot Locker, Kids Foot Locker, Champs Sports, WSS and atmos banners.
President and CEO Lauren Hobart pointed at the other half of the business. "We're proud of our second quarter performance in the DICK'S Business, where we delivered comp sales growth of 4.9% and gained market share despite growing pressure across portions of the athletic footwear and apparel marketplace," she said, crediting House of Sport, GameChanger, the DICK'S Media Network and a significant investment around the World Cup.
The revised outlook
DICK'S maintained its comparable sales outlook for the DICK'S business at positive 2.5% to 4.0%. It lowered the Foot Locker proforma comparable sales outlook to a range of negative 2.0% to flat, down from prior guidance for growth. Full-year consolidated guidance is $21.9 billion to $22.2 billion in net sales, $1.45 billion to $1.55 billion in operating income, and $10.94 to $11.94 in GAAP earnings per diluted share.
For fiscal 2026 the company now guides the DICK'S business to $14.5 billion to $14.7 billion in net sales and $1.54 billion to $1.60 billion in segment profit. It guides the Foot Locker business to $7.4 billion to $7.5 billion in net sales and a segment loss of $40 million to $80 million. Foot Locker will not enter the quarterly comparable sales calculation until the fourth quarter of fiscal 2026.
DKS fell roughly 31% on August 25 to close at $124.31, per GuruFocus, on volume of about 37.9 million shares against a three-month average near 2.0 million.
The reversal is sharp against where this stood three months ago. In May, DICK'S reported Q1 sales up 62.7% to $5.16 billion with Foot Locker returning to positive comps. Meanwhile the banner has kept investing in its cultural footprint, opening The Crenshaw Rec with Nike and The Marathon Clothing in August.
Source: DICK'S Sporting Goods Q2 2026 earnings release (SEC Form 8-K, Exhibit 99.1)
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