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Dick's Sporting Goods Trims Annual Outlook as Foot Locker Struggles
Retail Trade · Specialty Stores · cnbc · 2026-08-25
DKS
Dick's Sporting Goods reported quarterly revenue below analyst estimates and lowered its full-year guidance, citing a difficult environment for footwear.
What Happened
Earnings Performance and Guidance: Dick's Sporting Goods reported second-quarter revenue of $5.59 billion, falling short of the $5.65 billion anticipated by Wall Street analysts. Consequently, the company reduced its full-year net sales forecast to a range of $21.9 billion to $22.2 billion and lowered its consolidated operating income expectations.
Foot Locker Integration Challenges: The company's recent $2.4 billion acquisition of Foot Locker continues to face headwinds, with comparable sales for the segment declining by 3.6%. Management has revised its outlook for the Foot Locker business to a range of flat to down 2% as they work through a strategic turnaround.
Core Business Resilience: Despite broader market difficulties, the primary Dick's Sporting Goods brand maintained momentum with 4.9% comparable sales growth. This performance was bolstered by strong demand in various athletic categories, including significant interest surrounding the World Cup.
Operational and Financial Factors: The firm benefited from $59 million in tariff refunds during the quarter, which provided a minor offset to the broader revenue miss. CEO Lauren Hobart emphasized that despite a more cautious outlook for the remainder of the year, the company remains committed to its long-term growth strategy for both the core brand and its international expansion efforts.