Key Takeaways Shares of DKS plummeted 13% in early trading following disappointing Q2 financial results The company reported adjusted earnings per share of $3.53, falling short of analyst exp
Shares of Dick’s Sporting Goods (DKS) tumbled 13% to $157.45 during premarket hours on Tuesday following the retailer’s disappointing second-quarter performance and substantial reduction in annual earnings projections.
DICK’S Sporting Goods, Inc., DKS
The sporting goods retailer reported adjusted earnings per share of $3.53, representing a decline from the prior year’s $4.38 and missing analyst projections ranging from $3.76 to $3.78. While net sales climbed 53% from the previous year to $5.59 billion, the figure still came up short of Wall Street’s anticipated $5.64-$5.65 billion.
The substantial revenue increase was primarily attributed to the acquisition of Foot Locker, which closed in September 2025, rather than underlying business expansion.
DICK'S SPORTING GOODS $DKS EARNINGS ARE OUT!
EPS: $3.53 | Est. $3.76
— Schaeffer's Investment Research (@schaeffers) August 25, 2026
Comparable store sales across the company increased by 2.1%, underperforming the Street’s 4% projection. The core Dick’s Sporting Goods segment delivered 4.9% comp growth, representing a deceleration from the 6% posted in the first quarter.
The Foot Locker division emerged as the primary headwind, with proforma comparable sales declining 3.6% during the period.
Executive Chairman Ed Stack attributed the challenges to an increasingly promotional landscape in the athletic footwear and apparel categories, noting that market conditions deteriorated as the quarter advanced.
According to Stack, the Foot Locker operation suffered disproportionately due to its greater exposure to traditional footwear designs and launch or retro merchandise, categories that experienced heightened promotional activity.
Management dramatically reduced its full-year adjusted earnings per share projection to a band of $11.00 to $12.00. The $11.50 midpoint represents approximately 19% below the previous analyst consensus ranging from $14.20 to $14.28.
The company established revenue guidance between $21.9 billion and $22.2 billion, with the $22.05 billion midpoint trailing the $22.35 billion consensus estimate.
Dick’s additionally revised downward its Foot Locker segment proforma comparable sales projection to between -2.0% and 0.0%, while maintaining its Dick’s segment forecast at 2.5% to 4.0% expansion.
Adjusted operating income for the second quarter registered at 8.1% of net sales, marking a significant contraction from 13.0% recorded in the comparable period one year earlier.
Management cited the dilutive effect of 9.6 million newly issued shares connected to the Foot Locker transaction as a contributing factor to the results.
Operating margin projections were also lowered for both the Dick’s and Foot Locker operating segments.
Prior to Tuesday’s decline, DKS had already fallen 9.4% year-to-date, lagging the S&P 500’s performance in 2026.
Shares closed Monday’s session down 2.1% before the premarket plunge intensified losses.
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