Dick's Sporting Goods Shares Plunge 31% After Foot Locker Slump

Shares of Dick's Sporting Goods plunged approximately 31%—the worst single-day decline in company history—following a second-quarter earnings report that missed Wall Street expectations. The company reported revenue of $5.59 billion and adjusted earnings per share of $3.53, falling short of the $5.65 billion and $3.76 forecasts, respectively.

The decline was driven by the underperformance of Foot Locker, which Dick's acquired in 2025 for $2.4 billion. While the core Dick's business saw comparable sales grow 4.9%, aided by the 2026 FIFA World Cup, Foot Locker's comparable sales fell 3.6%. Consequently, the company lowered its full-year net sales outlook to between $21.9 billion and $22.2 billion and reduced adjusted earnings guidance to $11.00–$12.00 per share, down from $13.50–$14.50. Foot Locker is now expected to post a full-year segment loss of $40 million to $80 million.

Chairman Ed Stack attributed the weakness to a promotional marketplace and poor performance of new product launches, noting Foot Locker's heavy reliance on legacy footwear silhouettes. CFO Navdeep Gupta warned that gross margin pressure would be most pronounced in the third quarter. In response, Truist Securities downgraded both Dick's and its major supplier, Nike, to hold, with analyst Joseph Civello noting that Nike-branded shoes make up 35% to 40% of Dick's merchandise purchases. CEO Lauren Hobart maintained confidence in the long-term opportunity at Foot Locker despite the immediate headwinds.