Dick's trims 2026 outlook as Foot Locker weakens

For the second quarter ended August 1, 2026, DICK'S Sporting Goods (DKS) reported consolidated net sales of about $5.59 billion. Adjusted earnings per diluted share were $3.53, with GAAP earnings per diluted share of $3.50. Both revenue and adjusted EPS fell short of analyst expectations referenced in market coverage. The quarter highlighted differing trends across the company’s businesses, with strength in the DICK'S (DKS) chain offset by weakness at Foot Locker.

Within the DICK'S business, comparable sales increased 4.9% in the quarter. This performance contrasted with softer results in the athletic footwear-focused Foot Locker business, which operates under DICK'S ownership on a proforma basis. The blended result produced overall growth in sales but not enough to meet consensus forecasts.

Following the quarterly results, the company lowered its full-year 2026 consolidated net sales guidance to a range of $21.9 billion to $22.2 billion. The outlook for consolidated operating income was reduced to between $1.45 billion and $1.55 billion. DICK'S now expects GAAP earnings per diluted share of $10.94 to $11.94 for 2026, based on approximately 90 million diluted shares outstanding.

Management described its stance on the rest of the year as more cautious. The guidance changes reflect updated assumptions about demand trends and pricing in the athletic footwear and apparel categories. They also incorporate the weaker trajectory of the Foot Locker business relative to earlier expectations.

Proforma comparable sales for the Foot Locker business declined 3.6% for the 13 weeks ended August 1, 2026. In response, the company lowered Foot Locker’s full-year proforma comparable-sales outlook to a range of -2.0% to 0.0%. By contrast, DICK'S maintained its comparable-sales outlook for the DICK'S banner at positive 2.5% to 4.0% for 2026. This underscores a divergence between the performance of the core chain and the acquired Foot Locker operation.

Executives said the current athletic footwear and apparel marketplace has become more promotional. They noted that there were fewer footwear launches in the second quarter and that those launches underperformed both industry and internal expectations. The company indicated that these conditions had a more significant impact on the Foot Locker business, given its greater exposure to legacy footwear styles and dependence on launch and retro products.

In light of the revised outlook and category dynamics, management outlined several actions underway. These include optimizing inventory levels to better align with demand in a more promotional environment. The company is also closing underperforming stores and right-sizing assets to improve efficiency and returns.

The strategic focus is on adjusting the footprint and merchandise mix to current market conditions while preserving growth in the DICK'S banner. By maintaining the DICK'S comparable-sales outlook and resetting expectations for Foot Locker, the company is attempting to balance growth opportunities with risk management. The updated guidance and operational steps frame the company’s approach to navigating the remainder of 2026.