Dick’s Sporting Goods reported fiscal second-quarter earnings that fell short of Wall Street expectations, highlighting ongoing difficulties in the athletic footwear market. The company revealed that while its core Dick’s stores experienced a 4.9% increase in comparable sales, the Foot Locker business struggled with a 3.6% decline. This underperformance led the retailer to lower its full-year sales and operating income forecasts, causing its stock to drop 30% in trading—the worst single-day decline since 2023.

The retailer now projects Foot Locker’s comparable sales for the year to be flat or down by as much as 2%, a setback that contrasts with its expectations for Dick’s stores to post growth between 2.5% and 4%. Consequently, Dick’s adjusted its overall net sales guidance from a range of $22.1 billion to $22.4 billion down to a range between $21.9 billion and $22.2 billion. Operating income forecasts were also reduced to a range of $1.45 billion to $1.55 billion, compared to the previous $1.69 billion to $1.81 billion range.

For the quarter ended August 1, Dick’s reported a net income of $315 million, or $3.50 per share, down from $381 million, or $4.71 per share in the prior year. Excluding one-time impacts including those related to the Foot Locker acquisition, adjusted earnings per share came to $3.53, below the $3.76 expected by analysts. Revenue climbed significantly to $5.59 billion, versus $3.65 billion in the year-ago period, reflecting the consolidation of Foot Locker’s results.

CEO Lauren Hobart acknowledged the challenging market conditions but remained optimistic about the company’s prospects, emphasizing confidence in Dick’s own operations and the long-term strategy for Foot Locker. The acquisition of Foot Locker for $2.4 billion in 2025 aimed to expand Dick’s international footprint and strengthen its position in the competitive sportswear and athletic footwear sectors. However, the integration and turnaround efforts for Foot Locker are still ongoing amidst a difficult retail environment.