Shares of Dick's Sporting Goods sank Tuesday after the sports retailer cut its fiscal-year profit outlook as second-quarter earnings came in below expectations.

Dick's Sporting Goods stock dropped 21% to $142.31 on Tuesday after ending Monday down 2.1%. Shares were down down 9.4% this year as of the closing bell on Monday and were underperforming the S&P 500 in 2026.

Among other sports and footwear-related stocks, Nike fell 3.6%, Under Armour declined 2.9%, Academy Sports & Outdoors dropped 4.6%, and On Holding was down 2.7%.

The company posted adjusted earnings of $3.53 a share in its fiscal second quarter, down from $4.38 a year ago and below Wall Street expectations of $3.76. Net sales grew 53% to $5.59 billion, missing the analyst consensus call for $5.64 billion, according to FactSet.

Overall same-store sales increased 2.1%. Wall Street expected a 4% increase. The company's Dick's Sporting Goods business same-store sales increased 4.9% but decelerated from a 6% increase in the first quarter. Foot Locker same-store sales declined 3.6% in the second quarter.

The company also cut its outlook for the fiscal-year ending Jan. 30, 2027, to $11 to $12 a share down from the previous $13.50 to $14.50. That new guidance is well below Wall Street's $14.28 a share forecast, according to FactSet.

Executive Chairman Ed Stack said in the earnings release that "conditions across portions of the athletic footwear and apparel marketplace became increasingly promotional" and the company "took action to remain competitively priced to protect and grow our leadership position."

Stack added that the consumer environment hit Foot Locker particularly hard.

"We are taking a more cautious view of the balance of the year. While these near-term dynamics have led us to revise our expectations for 2026, our confidence in the long-term opportunities ahead for both Dick's and Foot Locker remains unchanged," Stack said.

Wall Street was braced for an underwhelming earnings report.

J.P. Morgan on Monday cut its Dick's Sporting Goods price target to $245 from $270 and reduced estimates on the belief the footwear cycle was slowing. The firm also noted the company's exposure to lower-end consumers could also be an issue.

Morgan Stanley analyst Simeon Gutman on Aug. 17 wrote he also expected a surprise to the downside with same-store sales decelerating.

"We think the underlying momentum has softened through June and July, pressured by weaker consumer confidence, broader macroeconomic challenges, and a general slowdown across the sporting goods retail sector," Gutman wrote.