Dick's Cuts 2026 Earnings Outlook to $10.94–$11.94
The sports retailer posted $3.50 a share in the second quarter as Foot Locker comps turned negative 3.6%.
Dick's Sporting Goods (DKS), a global sports retailer, lowered its full-year 2026 earnings-per-share outlook to $10.94 to $11.94 after the Foot Locker Business flipped to a 3.6% decline in pro forma comparable sales, reversing first-quarter growth.
The company said conditions across portions of the athletic footwear and apparel marketplace became increasingly promotional as the quarter progressed, and that it took action to remain competitively priced. It attributed a more significant impact to Foot Locker because of greater exposure to legacy footwear silhouettes and dependence on launch and retro products, and said there were fewer launches in the second quarter and that those that occurred performed below industry and company expectations.
GAAP earnings were $3.50 a share, compared with $4.71 a year earlier. Non-GAAP earnings were $3.53 a share, compared with $4.38 a year earlier. Results include the dilutive effect of 9.6 million shares issued in the Foot Locker acquisition. Net sales were $5.59 billion, up 53.2% from $3.65 billion a year earlier, when the Foot Locker Business was not included. GAAP operating margin compressed to 7.9% of net sales from 12.4% a year earlier; non-GAAP operating margin compressed to 8.1% from 13.0%.
The DICK'S Business, which includes DICK'S Sporting Goods, Golf Galaxy, Going Going Gone!, Public Lands and GameChanger, delivered 4.9% comparable sales growth, driven by broad-based growth across categories, including the 2026 FIFA World Cup, and growth in average ticket and transactions. That pace slowed from 6.0% in the first quarter. Segment profit was $485.2 million on net sales of $3.85 billion, compared with $475.0 million on $3.65 billion a year earlier. The company maintained its full-year 2026 DICK'S comparable sales outlook of 2.5% to 4.0%.
Foot Locker, which includes Foot Locker, Kids Foot Locker, Champs Sports, WSS and atmos, recorded a segment loss of $31.9 million on net sales of $1.74 billion. Pro forma consolidated comparable sales slowed to 2.1% in the second quarter from 2.5% in the first quarter. The company lowered the Foot Locker pro forma comparable sales outlook to negative 2.0% to 0.0% from 1.5% to 3.0% after the first quarter, and lowered the operating income outlook for both businesses.
Consolidated full-year 2026 operating income is now expected at $1.45 billion to $1.55 billion, down from $1.69 billion to $1.81 billion after the first quarter. Consolidated net sales are expected at $21.9 billion to $22.2 billion. DICK'S segment profit is expected at $1.54 billion to $1.60 billion, or 10.6% to 10.9% of net sales. Foot Locker segment profit is expected at a loss of $80 million to $40 million, or negative 1.1% to negative 0.5% of net sales.
President and Chief Executive Officer Lauren Hobart said the company is taking a more cautious view of the balance of the year and that confidence in the long-term opportunities for both DICK'S and Foot Locker remains unchanged. Executive Chairman Ed Stack said the DICK'S Business delivered a strong second quarter with broad-based growth across categories.
Inventories, net, were $5.57 billion as of August 1, 2026, including $3.6 billion for the DICK'S Business and $2.0 billion for Foot Locker. DICK'S inventory increased 6% from a year earlier. Cash and cash equivalents were $914 million. Long-term debt and finance lease obligations were $1.91 billion.
The company received $59.0 million in IEEPA tariff refunds and $2.1 million of related interest income in the second quarter and said it has received substantially all of the tariff refunds, with no material additional refund claims outstanding. Of the refunds, $38.1 million related to prior-year tariff costs and, with the interest, is excluded from non-GAAP earnings.
During the 26 weeks ended August 1, 2026, the company incurred $125.8 million of pre-tax charges in the Foot Locker review of unproductive assets, totaling $515.8 million to date. It currently expects total pre-tax charges of up to $750 million, including $200 million in fiscal 2026, with the remainder over the medium term. Foot Locker closed 110 stores during fiscal 2026, including 67 Foot Locker stores identified in that review, ending with 2,478 stores.
The board declared a quarterly dividend of $1.25 a share, payable September 25, 2026.