Dick's Sporting Goods reported second fiscal quarter earnings that missed Wall Street expectations, attributing the shortfall to a 'challenging' athletic footwear and apparel marketplace [1]. The company announced that its stock fell roughly 15% in premarket trading following the release of its results [1]. For the quarter ended August 1, Dick's posted adjusted earnings per share of $3.53, below the $3.76 expected by analysts, and revenue of $5.59 billion, also missing the anticipated $5.65 billion [1]. Net income was $315 million, or $3.50 per share, down from $381 million, or $4.71 per share, in the prior year [1].
Despite the overall miss, Dick's stores achieved 4.9% comparable sales growth, driven by broad-based gains across categories and strong results from the World Cup [1]. In contrast, Foot Locker, which Dick's acquired for $2.4 billion in 2025, saw a comparable sales decline of 3.6% [1]. As a result, Dick's lowered its outlook for the Foot Locker business to a range of flat to down 2% in comparable sales, while maintaining expectations for Dick's business to grow between 2.5% and 4% [1]. The company also revised its overall net sales outlook for the year downward, from a range of $22.1 billion to $22.4 billion to a new range of $21.9 billion to $22.2 billion [1].
Additionally, Dick's reduced its consolidated operating income outlook from a previous range of $1.69 billion to $1.81 billion to a new range of $1.45 billion to $1.55 billion [1]. The company reported receiving $59 million in tariff refunds and $2.1 million in related interest income during the quarter [1].
CEO Lauren Hobart stated, 'While we are taking a more cautious view of the balance of the year, we remain highly confident in the strength of the DICK'S Business and our long-term opportunity at Foot Locker' [1]. The company is currently implementing a turnaround strategy for Foot Locker, aiming to return the business to growth amid a booming sportswear market [1].
CONCLUSION
Dick's Sporting Goods' disappointing Q2 results and lowered outlook for Foot Locker led to a significant 15% drop in its stock price. While Dick's core business showed resilience with strong comparable sales growth, ongoing challenges in the athletic footwear segment and a cautious outlook weighed heavily on market sentiment.