Dick’s Sporting Goods Struggles Amid Challenging Footwear Market

Dick’s Sporting Goods, a leading American retailer of sports equipment and apparel, has reported disappointing second fiscal quarter earnings that missed Wall Street expectations. The company cited a ‘challenging’ environment, particularly in the athletic footwear and apparel marketplace.

According to a survey of analysts by LSEG, Dick’s reported earnings per share of $3.53 adjusted, falling short of the expected $3.76. Revenue came in at $5.59 billion, lower than the anticipated $5.65 billion. The company’s net income for the period ended August 1 was $315 million, or $3.50 per share, down from $381 million, or $4.71 per share, in the year-ago period.

Despite the challenges, Dick’s stores saw a 4.9% comparable sales growth, driven by ‘broad-based growth’ across categories, including strong results from the World Cup. However, Foot Locker, which Dick’s acquired for $2.4 billion in 2025, saw comparable sales decline by 3.6%. This led the company to revise its outlook for the Foot Locker business to a range of flat to down 2%, while maintaining its expectations for the Dick’s business to grow between 2.5% and 4%.

The company also lowered its overall net sales outlook for the year from a range of between $22.1 billion and $22.4 billion to a range of between $21.9 billion and $22.2 billion. Consolidated operating income is now expected to be within a range of $1.45 billion to $1.55 billion, down from the previous range of $1.69 billion to $1.81 billion.

CEO Lauren Hobart expressed confidence in the strength of the DICK’S Business and its long-term opportunity at Foot Locker, stating, ‘While we are taking a more cautious view of the balance of the year, we remain highly confident in the strength of the DICK’S Business and our long-term opportunity at Foot Locker.’

The company received $59 million in tariff refunds during the quarter and $2.1 million in related interest income. As Dick’s continues to navigate the challenging footwear market, it remains committed to its turnaround strategy for Foot Locker, which has previously weighed on the company’s bottom line.

With its acquisition of Foot Locker in 2025, Dick’s aimed to expand its international presence and better position itself against competitors. The company plans to refine Foot Locker’s strategy to return to growth, especially in a time when sportswear is booming.

Key Takeaways:

• Dick’s Sporting Goods reported second fiscal quarter earnings that missed Wall Street expectations.
• The company cited a ‘challenging’ environment, particularly in the athletic footwear and apparel marketplace.
• Dick’s stores saw a 4.9% comparable sales growth, driven by ‘broad-based growth’ across categories.
• Foot Locker saw comparable sales decline by 3.6%, leading the company to revise its outlook.