Dick’s Sporting Goods shares dropped sharply on Tuesday after the company cut its profit outlook for the year and reported second-quarter earnings that missed expectations.
The company posted adjusted earnings of $3.53 per share, down from $4.38 last year and below Wall Street’s estimate of $3.76. Net sales increased 53% to $5.59 billion, just under the consensus estimate of $5.64 billion, according to FactSet.
Same-store sales rose 2.1% overall, which was less than Wall Street’s expected 4% growth. Dick’s Sporting Goods stores saw same-store sales grow 4.9%, down from 6% in the first quarter. Foot Locker, which the company acquired, reported a 3.6% drop in same-store sales.
Dick’s lowered its earnings forecast for the fiscal year ending January 30, 2027, to between $11 and $12 per share. This is down from its previous range of $13.50 to $14.50 and below Wall Street’s forecast of $14.28 per share, according to FactSet.
Executive chairman Ed Stack said the athletic footwear and apparel market has become more promotional, so the company adjusted its prices to stay competitive and protect its position. He added that the tough consumer environment especially affected Foot Locker’s results.
Stack said the company is being more cautious for the rest of the year because of these short-term challenges, but he stressed that they are still confident about long-term growth for both Dick’s and Foot Locker.
