Shares plunged 30% after the sporting-goods retailer missed second-quarter expectations and slashed its full-year outlook, with Foot Locker responsible for much of the disappointment. Adjusted earnings came in at $3.53 per share, below Wall Street’s $3.76 expectation, while revenue of $5.59 billion missed the $5.65 billion consensus estimate. Comparable sales at Foot Locker fell 3.6% during the quarter.
Management’s expectations for the remainder of 2026 gave investors another reason to worry. Dick’s now expects Foot Locker comparable sales to range between a 2% decrease and flat, compared with its previous forecast calling for 1.5% to 3% growth. The company cut consolidated adjusted earnings guidance to $11 through $12 per share from $13.50 through $14.50, while lowering anticipated annual revenue to between $21.9 billion and $22.2 billion.
Foot Locker has struggled with weaker demand for legacy footwear, fewer successful launches, excess inventory, and heavier industry promotions. Those problems matter much more following Dick’s $2.4 billion acquisition, which closed last year and significantly increased its exposure to sneaker retail. Management now expects the acquired operation to post a segment loss between $40 million and $80 million during 2026, reversing an earlier forecast for profitability.
Importantly, the core Dick’s operation remains in much healthier shape following another quarter of comparable-sales growth. Same-store revenue for the namesake chain increased 4.9% during the second quarter, while management maintained its full-year forecast calling for gains between 2.5% and 4%.