Companies

Dick’s Sporting Goods turns cautious amid challenging market conditions

Aug 28, 2026 United States

The US-based sporting goods retailer has reported higher sales in the second quarter, but lowered part of its full-year guidance amid challenging market conditions and weaker performance at Foot Locker

In the second quarter of the 2026 financial year, which ended on the 1^st of August, Dick’s Sporting Goods recorded total sales of 5.59 billion US dollars, an increase of 53.2% compared to the same period of the last financial year.

Dick’s business achieved a 4.9% year-on-year increase in comparable sales, driven by strong performance across all categories, including the 2026 FIFA World Cup, as well as higher average transaction value. By contrast, Foot Locker’s pro forma comparable sales declined by 3.6%, reflecting challenges in the athletic footwear market.

“As the quarter progressed, conditions across portions of the athletic footwear and apparel marketplace became increasingly promotional, and we took action to remain competitively priced to protect and grow our leadership position. This environment had a more significant impact on the Foot Locker Business given its greater exposure to legacy footwear silhouettes and greater dependence on footwear launch and retro product”, emphasised Ed Stack, Executive Chairman of the company.

Profitability weakened during the second quarter. The company’s consolidated GAAP operating margin fell by 451 basis points to 7.9%, and the adjusted operating margin declined by 491 basis points to 8.1%, compared to the second quarter of the 2025 financial year.

Second-quarter diluted earnings per share dropped from 4.71 US dollars to 3.50 US dollars in the same period a year earlier, while adjusted earnings per share declined from 4.38 US dollars to 3.53 US dollars. These figures also reflect the dilutive impact of 9.6 million shares issued in connection with the acquisition of Foot Locker.

Full-Year Outlook

Against this challenging backdrop, Dick’s Sporting Goods has decided to adopt a more cautious approach for the remainder of the year. For the full year of 2026, it expects net sales of between 21.9 and 22.2 billion US dollars, with operating income of between 1.45 and 1.55 billion US dollars (down from a prior range of 1.68 billion to 1.81 billion US dollars).

The company has maintained its comparable sales outlook for the Dick’s business at 2.5% to 4.0% growth but has lowered its forecast for the Foot Locker business. It now expects pro forma comparable sales to range from a 2.0% decline to flat growth for the year.

Full-year diluted earnings per share are forecast to be between 10.94 and 11.94 US dollars, which reflects the dilutive impact of the 9.6 million shares issued in connection with the acquisition of Foot Locker. On an adjusted basis, diluted earnings per share are expected to be between 11.0 and 12.0 US dollars, which is down from the previous guidance of between 13.5 and 14.5 US dollars.

Image Credits: investors.dicks.com

United States Dicks Sporting Goods Foot Locker, Inc. Footwear Quarter Results Results Sportswear