Dick's and Foot Locker's quarterly results strike out, with a profit and sales miss and a lowered full-year outlook

Dick's Sporting Goods' stock was seeing a record selloff after the retailer's profit and sales missed expectations and the full-year outlook was slashed.

Shares of Dick's Sporting Goods tumbled toward their worst day in three years on Tuesday, as the sporting-goods retailer's bleak earnings report revealed that people needed deeper discounts to buy athletic shoes and clothes.

Executive Chair Ed Stack said the company $(DKS)$ delivered a "strong second quarter" in line with its expectations, but investors disagreed, as profit and sales both missed analyst expectations and the company slashed its full-year earnings outlook.

Stack acknowledged on the post-earnings call with analysts that as the quarter progressed, "it became clear that inventory levels were building up across parts of the industry," particularly in athletic footwear and apparel, "leading to a much more promotional environment," according to an AlphaSense transcript.

The stock sank 25% in recent morning trading, which put it on track to suffer its biggest one-day loss since the stock began trading in October 2002, according to FactSet data. It was also headed for its lowest close since Nov. 30, 2023.

The selloff was having an impact on shares of other athletic-gear sellers, with Nike's stock $(NKE)$ dropping 2.7% and Under Armour shares $(UAA)$ shedding 3%.

Stack said the promotional environment affected both its Dick's and Foot Locker businesses, but to different degrees. Foot Locker, which Dick's acquired in September 2025, had a harder time of it, given its greater exposure to legacy sneaker brands and its greater dependency on launch and retro products.

"Not only were there fewer launches in the second quarter, but the launches we did see performed below industry and our expectations," Stack said.

The company reported net income for the quarter to Aug. 1 that fell 17.3% from a year ago to $315.5 million. Excluding nonrecurring items, adjusted earnings per share dropped to $3.53 from $4.38 and missed the average analyst estimate compiled by FactSet of $3.76.

Sales rose 53.2% to $5.59 billion, boosted by the addition of Foot Locker sales, but missed the FactSet consensus of $5.64 billion.

At Dick's stores, sales grew 5.6% to $3.85 billion, below expectations of $4.1 billion, while Foot Locker sales of $1.74 billion fell short of analyst forecasts for $1.82 billion.

For the full fiscal year, the company cut its guidance ranges for adjusted EPS to a range of $11 to $12 from a range of $13.50 to $14.50 and for net sales to a range of $21.9 billion to $22.2 billion from a range of $22.1 billion to $22.4 billion.

Dick's stock has dropped 32.1% in 2026, while Nike shares have lost 37.7% and Under Armour's stock has gained 4.8%. The S&P 500 index SPX has advanced 12% this year.

-Tomi Kilgore