Dick's Sporting Goods Lowers Full-Year Outlook Following Second-Quarter Miss

09:05 AM EDT, 08/25/2026 (MT Newswires) -- Dick's Sporting Goods (DKS) lowered its full-year outlook on Tuesday amid a challenging athletic footwear and apparel marketplace, while the company's fiscal second-quarter results fell short of market estimates. The athletic goods retailer now expects adjusted earnings to come in between $11 and $12 per share for fiscal 2026, down from its previous projections of $13.50 to $14.50. Sales are pegged to be in a range of $21.9 billion to $22.2 billion, compared with the prior guidance of $22.1 billion to $22.4 billion. The current consensus on FactSet is for non-GAAP EPS of $14.28 and sales of $22.33 billion. Shares of the company tanked 18% in the most recent premarket activity. Conditions across parts of the athletic footwear and apparel marketplace "became increasingly promotional" as the second quarter progressed, prompting Dick's to keep prices competitive, Executive Chairman Ed Stack said in a statement. The environment had a significant impact on Foot Locker, which Dick's acquired last year, resulting in fewer launches in the quarter, according to Stack. "As a result, we are taking a more cautious view of the balance of the year," Stack said. "While these near-term dynamics have led us to revise our expectations for 2026, our confidence in the long-term opportunities ahead for both Dick's and Foot Locker remains unchanged." The retailer continues to forecast comparable sales for the Dick's business to rise by 2.5% to 4% for the ongoing fiscal year. The average analyst estimate is for same-store sales growth of 3.6%. Comparable sales for Foot Locker are now anticipated to be flat to down 2% versus the previous outlook for growth of 1.5% to 3%. Last week, Oppenheimer said in an emailed client note that it expected Dick's to deliver second-quarter results at least in line with its plan and potentially provide a positive update to its full-year outlook. For the three months through Aug. 1, the retailer's adjusted EPS fell to $3.53 from $4.38 the year before, below the Street's view for $3.76. Sales jumped 53% to $5.59 billion, but were shy of the market's estimate of $5.64 billion. Comparable sales for the Dick's business increased 4.9%, despite "growing pressure across portions of the athletic footwear and apparel marketplace," Chief Executive Lauren Hobart said. Analysts surveyed by FactSet had modeled a gain of 4%. On a pro forma basis, consolidated same-store sales were up 2.1%. "Our (second-quarter) results reflect the strength of our athlete-focused strategy, broad differentiated assortment, strong brand partnerships and continued focus on profitable growth opportunities," according to Hobart. "We invested significantly around the FIFA World Cup, and our team delivered outstanding results." Rival Academy Sports and Outdoors (ASO) and luxury athletic apparel retailer Lululemon Athletica (LULU) are scheduled to release their latest financial results next month. In June, sportswear giant Nike (NKE) posted a year-over-year decline in its fiscal fourth-quarter revenue.