Dick's Cuts Forecast as Foot Locker Sales Slide

Dick's Cuts Forecast as Foot Locker Sales Slide

The News

Dick's Sporting Goods missed Wall Street's revenue expectations on Tuesday and cut its forecasts for the rest of the year, blaming what it called a "challenging athletic footwear and apparel marketplace."

Revenue for the quarter ended Aug. 1 came in at $5.59 billion, against the $5.65 billion analysts expected, according to an LSEG survey cited by CNBC.

The problem was not the Dick's stores — it was Foot Locker, the chain Dick's bought for $2.4 billion in 2025.

Shares fell 13 percent in premarket trading, CTV News reported.

The numbers

Dick's own stores posted 4.9 percent comparable sales growth, which the company attributed to "broad-based growth" across categories, including strong results from the World Cup.

Foot Locker comparable sales fell 3.6 percent.

Net income was $315 million, or $3.50 per share, down from $381 million, or $4.71 per share, a year earlier. Adjusted for one-time items including the Foot Locker acquisition, the company reported $3.53 per share; analysts had expected $3.76, though CNBC noted it was not immediately clear the two figures were comparable.

Total sales rose from $3.65 billion in the year-ago period to $5.59 billion.

The company also said it received $59 million in tariff refunds during the quarter, plus $2.1 million in related interest income.

The cut

Dick's lowered its full-year net sales outlook to a range of $21.9 billion to $22.2 billion, down from $22.1 billion to $22.4 billion.

It cut its consolidated operating income outlook to $1.45 billion to $1.55 billion, from $1.69 billion to $1.81 billion.

It revised the Foot Locker comparable sales outlook to flat to down 2 percent. It still expects the Dick's business to grow between 2.5 percent and 4 percent.

Reactions

"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," CEO Lauren Hobart said in a statement.

Reuters and CTV News framed the quarter as a consumer story: pressured discretionary spending in a cautious consumer environment weighing on demand for sporting goods and athletic apparel.

What's Next

Dick's is in the middle of a turnaround effort at Foot Locker, which has weighed on its bottom line before. The company has been trying to refine Foot Locker's strategy to get it back to growth — and, as CNBC noted, it is trying to do that at a time when sportswear is booming.

The lowered guidance sets the bar for the rest of the fiscal year: flat-to-negative comparable sales at Foot Locker, continued growth at Dick's, and roughly $250 million less operating income than the company was projecting before.

More

Dick's acquired Foot Locker in 2025, saying at the time it planned to use the deal to expand internationally and better position itself against competitors.

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