DICK'S Sporting Goods shares plunged 31% after the company reported second-quarter fiscal 2026 earnings that missed expectations and cut its full-year outlook. Adjusted earnings per share came in at $3.53, below the Zacks Consensus Estimate of $3.78, while revenues of $5.59 billion fell short of the $5.63 billion estimate but rose 53.2% year over year, boosted by the Foot Locker acquisition. The company lowered its fiscal 2026 adjusted EPS guidance to $11.00-$12.00 from $13.50-$14.50 and reduced its net sales forecast to $21.9-$22.2 billion from $22.1-$22.4 billion, citing a more promotional athletic footwear and apparel market. The Foot Locker Business, which generated $1.74 billion in revenue, saw pro forma comparable sales decline 3.6% due to weaker demand for legacy footwear silhouettes and fewer product launches. Adjusted gross margin fell 300 basis points to 34.1% of sales, reflecting the Foot Locker mix, promotional activity, and higher costs. The company ended the quarter with $914 million in cash and inventories of $5.6 billion, and it continues to expand its House of Sport and Field House locations.
Dick’s Sporting Goods IncQ2 earnings miss and lowered full-year guidance
Foot Locker comparable sales decline due to weaker demand for legacy footwear
