Dick's Sporting Goods cuts outlook after Foot Locker drags earnings

Dick's Sporting Goods reported second-quarter earnings on Tuesday that missed Wall Street expectations and prompted the retailer to lower its full-year financial outlook, citing a challenging athletic footwear market that has particularly impacted its recently acquired Foot Locker business. The company's stock fell sharply in premarket trading following the results.

For the quarter ended August 1, the Pittsburgh-based retailer posted net income of $315 million, or $3.50 per diluted share. This was down from $381 million, or $4.71 per share, in the same period a year earlier. After adjusting for one-time items, including costs related to its Foot Locker acquisition, earnings came to $3.53 per share. Revenue rose to $5.59 billion from $3.65 billion a year ago, driven by the inclusion of Foot Locker, but fell short of the $5.64 billion in sales and $3.76 in adjusted earnings per share that analysts had anticipated.

The company's core Dick's Sporting Goods business delivered comparable sales growth of 4.9%, supported by broad-based gains across categories and strong results from the 2026 FIFA World Cup. However, the Foot Locker segment reported a pro forma comparable sales decline...