Dick's Sporting Goods Posts Worst Day on Record After Q2 Miss and Deep Guidance Cut Tied to Foot Locker Weakness

Dick's Sporting Goods stock fell roughly 29 to 30 percent on August 25, its worst single-day decline since its 2002 IPO, after the company reported a fiscal second-quarter double miss and slashed its full-year outlook. Revenue came in at $5.59 billion, below the $5.65 billion consensus, while adjusted EPS of $3.53 trailed the $3.78 estimate and fell 19 percent year over year. The core Dick's segment held up relatively well, posting $3.85 billion in sales, up 5.6 percent, with comparable-store sales rising 4.9 percent and segment profit growing 2 percent to $485.2 million.

The drag came almost entirely from Foot Locker, the chain Dick's acquired for roughly $2.4 billion. Foot Locker generated $1.74 billion in revenue and a segment loss of $31.9 million, with proforma comparable sales falling 3.6 percent as the athletic footwear market turned sharply promotional amid fewer sneaker launches and weak performance from retro and legacy silhouettes. Executive Chairman Ed Stack attributed the shortfall to conditions that had a more significant impact on Foot Locker given its greater dependence on footwear launches and retro product.

For the full fiscal year 2026, Dick's cut its net sales guidance to $21.9 billion to $22.2 billion from a prior range that implied roughly $22.4 billion, and slashed its adjusted EPS outlook to $11.00 to $12.00 from the prior midpoint of around $14.24. Adjusted operating income guidance was reduced to $1.46 billion to $1.56 billion from $1.71 billion to $1.83 billion, and the expected tax rate was raised to approximately 29 percent from 27 percent. The Foot Locker segment outlook was cut sharply: net sales now projected at $7.4 billion to $7.5 billion versus a prior $7.6 billion to $7.7 billion, comparable sales revised to negative 2.0 percent to flat from a prior positive 1.5 percent to 3.0 percent, and segment profit swung to a projected loss of $40 million to $80 million versus a prior profit of $110 million to $150 million.

Shares of Nike and Academy Sports also fell in sympathy. Law firm Glancy Prongay Wolke and Rotter announced a securities fraud investigation into the company by market close.