- Dick's Sporting Goods revised its 2026 outlook and warned of weakening consumer demand for athletic apparel and footwear.
- The retailer's stock declined over 29% during Tuesday's trading session, on pace for a record one-day percentage drop, after missing second-quarter estimates and reversing expectations for annual comparable sales growth at Foot Locker.
- Executives cited fewer launches in the second quarter and underperformance relative to industry and expectations, leading to a more cautious view of the rest of the year.
- Dick's lowered its annual sales forecast to $21.9 billion to $22.2 billion (from $22.1–$22.4 billion), missed quarterly profit estimates ($3.53 vs. $3.76), and reported $5.59 billion in net sales for the 13 weeks ending Aug. 1, missing estimates of $5.65 billion.
- CEO Lauren Hobart said the company remains "highly confident in the strength of Dick's Business and our long-term opportunity at Foot Locker."
- Executives said on a post-earnings call that legacy silhouettes were "simply not resonating the way they once did," leading to inflated inventory and heavy discounting.
- Analyst Neil Saunders of GlobalData said the weakness "does not bode well for the major sneaker brands," though they may offset some weakness with apparel, and that "it will set alarm bells ringing for investors."
Dick's Sporting Goods experienced a dramatic stock decline of over 29% on Tuesday, marking a potential record one-day drop, as the retailer revised its 2026 sales outlook downward and warned of weakening demand for athletic apparel and footwear. This follows a disappointing second-quarter performance that saw the company miss profit estimates and adjust its expectations for annual comparable sales growth at Foot Locker.
The company reported a quarterly profit of $3.53 per share, falling short of the $3.76 estimates, and net sales of $5.59 billion for the 13 weeks ending on August 1, which also missed expectations of $5.65 billion. Dick's now projects annual sales between $21.9 billion and $22.2 billion, a reduction from its previous forecast of $22.1 billion to $22.4 billion.
Executive Chairman noted, "Not only were there fewer launches in the second quarter, but those launches performed below both industry and our expectations," indicating a cautious outlook for the remainder of the year. CEO Lauren Hobart expressed confidence in the company's long-term prospects, stating, "we are taking a more cautious view of the balance of the year."
Analysts, including Neil Saunders from GlobalData, warned that the current trends do not bode well for major sneaker brands, although they may offset some weakness by focusing more on apparel. He added, "Even so, it will set alarm bells ringing for investors."
Dick's also indicated that part of the $59 million received from Foot Locker will be invested in promotions to stimulate sales.
“The company now projects annual sales of $21.9 billion to $22.2 billion, down from its prior $22.1–$22.4 billion range, and missed quarterly profit estimates at $3.53 per share. CEO Lauren Hobart remains "highly confident" in the long-term opportunity at Foot Locker, despite expecting its comparable sales to be flat to down 2%.”
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