Dick's Sporting Goods Lowers Sales Outlook After Foot Locker Weakness

Dick's Sporting Goods Inc. lowered its full-year net sales outlook to a range of $21.9 billion to $22.2 billion, citing performance weakness at Foot Locker. The company acquired the sneaker chain last year for $2.4 billion.

Despite sales gains during the World Cup, the company faced an increasingly promotional marketplace in athletic footwear and apparel. This environment forced price reductions to maintain competitiveness. Chairman Ed Stack stated that Foot Locker was particularly affected because of its dependence on retro product launches and legacy footwear silhouettes.

Shares of Dick's Sporting Goods dropped as much as 12% in premarket trading following the announcement. Shares of Nike, a major supplier for both Dick's and Foot Locker, also declined.