Dick’s Sporting Goods’ Core Business Grows 4.9%, but Foot Locker Losses and Weak Guidance Send Shares Tumbling

DKS shares crashed 30% after the retailer missed earnings estimates and slashed full-year guidance, dragged down by losses at its recently acquired Foot Locker business. The core Dick's Sporting Goods operation delivered 4.9% comparable sales growth, but Foot Locker posted a 3.6% comparable sales decline and a $32 million loss in the quarter.

Management drastically revised Foot Locker expectations, now projecting losses of $40 million to $80 million and negative comparable sales throughout 2026. The unit was previously forecast to generate $110 million to $150 million in profit. The $190 million swing in Foot Locker's earnings outlook overshadowed otherwise solid performance from the Dick's nameplate stores.

The steep selloff reflects investor concern that the Foot Locker acquisition—intended to expand Dick's footprint in athletic footwear—has become a material drag on consolidated results. The guidance cut suggests turnaround efforts will take longer and cost more than initially anticipated.