Dick's Sporting Goods Stock Drops 18% After Q2 Miss and Deep Cut to Full-Year Profit Outlook

Dick's Sporting Goods reported second-quarter fiscal 2026 results that fell short of expectations on both revenue and profit, and the company sharply reduced its full-year guidance, sending shares down 18.4% in premarket trading. Revenue came in at $5.59 billion, below the $5.65 billion consensus estimate but up 53.2% year-over-year, largely reflecting the acquired Foot Locker business. Adjusted earnings per share of $3.53 missed the $3.78 estimate by roughly 7% and were down 19% from the prior year.

For the full fiscal year 2026, the company cut its adjusted EPS outlook to $11.00-$12.00 from a prior implied range that analysts had pegged near $14.24, and lowered its adjusted operating income guidance to $1.46 billion-$1.56 billion from $1.71 billion-$1.83 billion. Net sales guidance was trimmed to $21.9 billion-$22.2 billion, below the $22.38 billion consensus. The company also raised its expected tax rate to approximately 29% from 27%.

The core Dick's Sporting Goods segment posted $3.85 billion in revenue, up 5.6% year-over-year, with comparable sales rising 4.9% and segment profit growing 2% to $485.2 million. The Foot Locker segment was the primary drag, generating $1.74 billion in revenue and a segment loss of $31.9 million, with proforma comparable sales declining 3.6%. The full-year Foot Locker outlook was cut sharply, with segment profit now expected at negative $80 million to negative $40 million, down from a prior forecast of $110 million to $150 million, and Foot Locker comparable sales guidance revised to a range of negative 2.0% to flat from a prior expectation of positive 1.5% to 3.0%.

Executive Chairman Ed Stack cited an increasingly promotional environment in athletic footwear and apparel, noting that Foot Locker faced heavier exposure to legacy footwear silhouettes and suffered from fewer and weaker product launches in the quarter. CEO Lauren Hobart said the company is taking a more cautious view for the remainder of the year while expressing confidence in the long-term Dick's business and the Foot Locker opportunity.