PITTSBURGH, August 25, 2026, 20:00 EDT — DICK’S Sporting Goods shares fell 30.7% as a sharp drop in Foot Locker stock erased $4.9 billion in market value.
- DICK’S Sporting Goods stock finished down 30.68% at $124.31, marking its biggest single-day drop on record.
- The drop wiped roughly $4.92 billion from the company’s quoted market value.
- Foot Locker’s full-year profit forecast shifted by $190 million at the midpoint.
- The midpoint for adjusted earnings guidance dropped 17.9% to $11.50 per share.
DICK’S Sporting Goods, Inc. NYSE:DKS dropped 30.68% on Tuesday, ending the session at $124.31, with a low of $124.00. Trading volume was 38.88 million shares market data.
The drop wiped out nearly $4.92 billion in market capitalization. That figure results from multiplying the $55.02 decrease per share by the 89.50 million shares outstanding. The loss was around 26 times larger than Foot Locker’s $190 million reversed profit forecast.
Foot Locker revised its earnings narrative as comparable sales for the second quarter declined by 3.6%. The segment recorded an operating loss of $31.9 million, in contrast to DICK’S main business, which reported earnings of $485.2 million.
Foot Locker management is now projecting a loss of $40 million to $80 million for this year. Just three months ago, the company had anticipated a profit between $110 million and $150 million. As a result, the midpoint forecast has shifted from a $130 million profit to a $60 million loss.
| Fiscal 2026 measure | Previous outlook | Revised outlook | Midpoint change |
|---|---|---|---|
| Adjusted EPS | $13.50–$14.50 | $11.00–$12.00 | −17.9% |
| Net sales | $22.1B–$22.4B | $21.9B–$22.2B | −0.9% |
| Operating income | $1.68B–$1.81B | $1.45B–$1.55B | −14.0% |
| Foot Locker segment profit | $110M–$150M | Net loss of $40M–$80M | −$190M |
The table illustrates that sales figures underplay the impact. Revenue guidance dropped by less than 1% at the midpoint, while operating-income guidance decreased 14%, highlighting the margin effect from discounting and slow product turnover.
Net sales for the quarter increased by 53.2% to $5.59 billion following the acquisition. However, the adjusted operating margin dropped to 8.1% from 13.0%. Adjusted earnings were down 19% to $3.53 per share company results.
The main chain showed stronger health. DICK’S saw comparable sales climb 4.9%, boosted by demand for the World Cup. Foot Locker relies more on sales of retro sneakers and fresh releases.
Executive Chairman Ed Stack noted a reduction in launches and said performance fell short of expectations. Higher footwear inventory led to more promotions in the market Reuters.
The balance sheet is under strain. Inventory climbed to $5.57 billion, marking a 63% increase on the year. Cash declined 26% to $914 million, as long-term debt and finance leases rose 28% to $1.91 billion.
Analysts adjusted their targets without delay. Gordon Haskett reduced its price target to $130 from $205. Wells Fargo revised its target down to $185 from $240, and Jefferies decreased its target to $171 from $224 analyst actions.
DICK’S acquired Foot Locker in September 2025 with a purchase price close to $2.5 billion. The deal was projected to generate between $100 million and $125 million in medium-term cost synergies acquisition announcement.
Risks: Swift inventory reduction has the potential to improve Foot Locker margins more quickly than the price on Tuesday indicated. However, continued discounting poses a risk on the downside. A sluggish launch cycle could weigh on cash flow and put the synergies from the acquisition at risk.
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