Dick's Sporting Goods misses Q2 revenue estimates, cuts full-year outlook

Dick's Sporting Goods reported second fiscal quarter revenue on Tuesday that fell short of Wall Street expectations, citing what the company described as a "challenging athletic footwear and apparel marketplace."

The retailer noted that Foot Locker was significantly impacted by these conditions and subsequently lowered its comparable sales outlook for the chain. However, Dick's own stores posted 4.9% comparable sales growth during the quarter.

Key Financial Results

Here is how Dick's performed in its second fiscal quarter compared with Wall Street expectations, based on a survey of analysts by LSEG:

• Adjusted earnings per share: $3.53 (comparability to the $3.76 expected was not immediately clear)
• Revenue: $5.59 billion vs. $5.65 billion expected

Quarterly Performance

For the period ended August 1, Dick's reported:

• Net income: $315 million, or $3.50 per share, down from $381 million, or $4.71 per share, in the year-ago period
• Adjusted net income: $3.53 per share, excluding one-time items including the Foot Locker acquisition
• Sales: $5.59 billion, up from $3.65 billion in the prior-year period

Segment Performance

• Dick's stores: 4.9% comparable sales growth, driven by "broad-based growth" across categories, including strong results tied to the World Cup
• Foot Locker: 3.6% comparable sales decline

Revised Outlook

Dick's updated its full-year guidance as follows:

| Metric | Previous Outlook | Revised Outlook | |---|---|---| | Foot Locker comparable sales | Not specified | Flat to down 2% | | Dick's comparable sales growth | 2.5% to 4% | 2.5% to 4% (unchanged) | | Total net sales | $22.1 billion to $22.4 billion | $21.9 billion to $22.2 billion | | Consolidated operating income | $1.69 billion to $1.81 billion | $1.45 billion to $1.55 billion |

Additional Details

• The company received $59 million in tariff refunds during the quarter and $2.1 million in related interest income.
• CEO Lauren Hobart stated: "While we are taking a more cautious view of the balance of the year, we remain highly confident in the strength of the DICK'S Business and our long-term opportunity at Foot Locker."

Context

Dick's is currently implementing a turnaround strategy for Foot Locker, which it acquired for $2.4 billion in 2025. The company has been working to refine Foot Locker's strategy to return to growth, particularly amid a booming sportswear market. The acquisition was intended to expand Dick's international presence and strengthen its competitive position.

Image: A Dick's Sporting Goods retail store in Austin, Texas, on May 15, 2025. (Brandon Bell | Getty Images)