PITTSBURGH, August 25, 2026, 08:27 EDT — Investors drove active premarket trading in the U.S.
- Dick’s stock dropped 16.4% before the market opened after the company reported earnings and revenue below expectations.
- The midpoint for adjusted EPS guidance fell by 17.9%, nearly mirroring the movement in the share price.
- Comparable sales at Core Dick’s climbed 4.9%, while Foot Locker reported a 3.6% decline in comps.
- Foot Locker is forecast to post a loss ranging from $40 million to $80 million this year.
Shares of Dick’s Sporting Goods, Inc. NYSE:DKS dropped 16.4% ahead of the market open on Tuesday. The company lowered its annual outlook after its Foot Locker business was impacted by weaker footwear releases and increased promotional activity.
The share movement reflects the revised earnings outlook. Dick’s cut the midpoint of its adjusted EPS guidance by 17.9% to $11.50, down from $14.00.
This is the strongest signal for investors. The main Dick’s chain continued to expand, while the addition of Foot Locker increased the challenges of a tough footwear market.
| Q2 measure | Reported | Consensus / prior year | Variance |
|---|---|---|---|
| Adjusted EPS | $3.53 | $3.76 consensus | 6.2% below |
| Revenue | $5.59 billion | $5.64 billion consensus | 1.0% shortfall |
| GAAP operating margin | 7.9% | 12.4% prior year | -451 basis points |
| GAAP EPS | $3.50 | $4.71 prior year | down 26% |
Revenue climbed 53.2% to $5.59 billion with the addition of Foot Locker. However, GAAP operating margin dropped by 451 basis points to 7.9%.
The internal division was pronounced. Comparable sales at core Dick’s rose 4.9%, whereas pro forma sales at Foot Locker dropped 3.6%. Foot Locker recorded a segment loss of $31.9 million.
Executive Chairman Ed Stack stated that recent footwear launches “performed below both industry and our expectations.” Stack also pointed to increased exposure to older footwear models at Foot Locker. Dick’s earnings release
| 2026 outlook | Previous | Revised | Midpoint change |
|---|---|---|---|
| Net sales | $22.1B–$22.4B | $21.9B–$22.2B | -0.9% |
| Adjusted operating income | $1.68B–$1.81B | $1.46B–$1.56B | -13.5% |
| Adjusted EPS | $13.50–$14.50 | $11.00–$12.00 | -17.9% |
| Foot Locker comparable sales | +1.5% to +3.0% | -2.0% to 0.0% | -3.25 points |
The updated figures indicate that Foot Locker may see a segment loss between $40 million and $80 million. Dick’s main business maintains its segment margin forecast at 10.6% to 10.9%.
Inventory presented an additional limitation. It climbed 63% to $5.57 billion, with $2.0 billion attributable to Foot Locker. Dick’s core inventory was up 6%.
Dick’s has recorded $515.8 million in Foot Locker restructuring costs so far. Overall charges may climb to $750 million. The acquired operations shuttered 110 stores in fiscal 2026.
Investors adjusted their risk assessments rapidly. DKS shares changed hands at $149.94 at 08:27 EDT, sharply lower from the $179.33 closing price on Monday. According to initial calculations, this drop wiped out roughly $2.6 billion from the company’s $16.05 billion market capitalization as of Monday.
| Analyst | Firm | Rating | Target | Date |
|---|---|---|---|---|
| Christopher Horvers | J.P. Morgan | Buy | $245 | Aug. 24 |
| Joe Feldman | Telsey Advisory | Buy | $255 | Aug. 19 |
| Simeon Gutman | Morgan Stanley | Buy | $270 | Aug. 17 |
| Lorraine Hutchinson | Bank of America | Buy | $245 | Aug. 18 |
| Michael Lasser | UBS | Buy | $275 | Aug. 13 |
| Sam Poser | Williams Trading | Hold | $215 | May 28 |
The previous consensus appears outdated. The average target of $259.57 was 73% higher than the premarket price, though each listed target was set before Tuesday’s guidance revision.
Risks: Promotions could intensify, Foot Locker’s losses might surpass its outlook, and markdowns may be needed to address inventory. A swifter footwear rebound would suggest the selloff was overdone.
Related articles: Earnings
