Dick's Sporting Goods slashes 2026 outlook as consumer demand falls

Key Points:

• Dick's Sporting Goods revised its 2026 outlook downward and warned of weakening consumer demand for athletic apparel and footwear, leading to a stock drop of over 29% in a single day.
• The company missed second-quarter earnings estimates and reversed its expectations for annual comparable sales growth at Foot Locker, which it acquired last year for $2.4 billion.
• Foot Locker is struggling due to weak demand for legacy brands and challenges in international markets, resulting in excess inventory and heavy discounting.
• Dick's plans to close some Foot Locker stores and expects Foot Locker's annual comparable sales to be flat or decline by up to 2%, signaling a more cautious outlook for the remainder of the year.
• Despite the challenges, Dick's executives remain confident in the long-term potential of both Dick's and Foot Locker businesses, although they lowered their overall annual sales forecast to $21.9 billion-$22.2 billion.