Dick’s Sporting Goods reported quarterly revenue that missed Wall Street expectations on Tuesday, lowering its full-year profit and sales outlook amid what leadership described as a challenging footwear and apparel market. The retailer’s stock dropped sharply following the earnings release.
Second-Quarter Earnings Fall Short of Wall Street Projections
For the period ended August 1, Dick’s reported net income of $315 million, or $3.50 per share, down from $381 million, or $4.71 per share, during the same period the previous year. Adjusting for one-time items, including its acquisition of Foot Locker, the company posted $3.53 per share.
Revenue rose to $5.59 billion, an increase from $3.65 billion in the year-ago period, but fell short of the $5.65 billion expected by analysts surveyed by LSEG. Wall Street had also anticipated adjusted earnings per share of $3.76. It was not immediately clear if that was comparable to the $3.53 reported. Shares of Dick’s Sporting Goods dropped sharply in Tuesday trading following the earnings report and outlook revision.
Foot Locker Acquisition Drags Down Retailer Outlook
The weaker-than-expected guidance is tied directly to performance struggles within the company’s Foot Locker business. While Dick’s stores posted 4.9% comparable sales growth for the quarter, driven by broad-based gains across categories and strong results from the World Cup, Foot Locker saw comparable sales decline by 3.6%.
Dick’s acquired Foot Locker for $2.4 billion in 2025 to expand its international presence and better compete against rivals. However, the integration has weighed on the bottom line as the company works to implement a turnaround for Foot Locker, which has previously weighed on the company’s bottom line and sought to refine its strategy to return to growth at a time when sportswear is booming. The company revised its outlook for the Foot Locker business to a range of flat to down 2%, though it still expects core Dick’s stores to grow between 2.5% and 4%.
While we are taking a more cautious view of the balance of the year, we remain highly confident in the strength of the DICK'S Business and our long-term opportunity at Foot Locker,
CEO Lauren Hobart said in a statement.
Full-Year Guidance and Financial Revisions
Because of the headwinds in the footwear and apparel market, the company lowered its overall net sales outlook for the year from a range of between $22.1 billion and $22.4 billion down to a range of between $21.9 billion and $22.2 billion.
The company also adjusted its consolidated operating income outlook from a previous range of between $1.69 billion and $1.81 billion to a range of $1.45 billion to $1.55 billion. Amid these adjustments, the retailer noted it received $59 million in tariff refunds during the quarter alongside $2.1 million in related interest income.
Humilis Investment Strategies CEO and CIO Brian Belski highlighted Dick’s Sporting Goods as a prime retail stock positioned for double-digit gains on ‘Varney & Co.’, citing excellent management and strong performance relative to competitors while explaining why a broadening market benefits retail.
San Jose Retail Expansion Plans Move Forward
Away from the quarterly earnings report, real estate plans in California show the retailer is continuing its push into large-format retail. Dick’s aims to relocate to the fire-scorched site of a former Home Depot at 920 Blossom Hill Road in South San Jose, according to papers filed with the San Jose Planning Department. The Home Depot building was heavily damaged in an April 2022 fire that investigators ruled was caused by an arsonist.
The former Home Depot building totals roughly 99,000 square feet, according to the filing, significantly larger than the existing Dick’s Sporting Goods location at 680 Blossom Hill Road, which spans about 40,000 square feet. The size of the proposed Dick’s Sporting Goods store would be in the range of a large-format retail hub known as House of Sport.
House of Sport is a 100,000-square-foot-plus store that provides athletes with an incredible assortment of products along with in-store experiences,
Dick’s Sporting Goods states on its website, noting that the locations focus on deep integration with the local community through partnerships, events, attached fields for open play, clinics, league space, or winter ice rinks. The experiences typically include a climbing wall, multiple golf bays with TrackMan simulators, and multisport cages that can be used for baseball, softball, lacrosse, and soccer.
Dick’s House of Sport is redefining sports retail,
Lauren Hobart, chief executive officer of Dick’s Sporting Goods, stated in a conference call with analysts in March 2023. It is an experience that fosters deep community involvement that goes well beyond traditional retail.
Dick’s Sporting Goods is planning significant upgrades both inside and outside the existing former Home Depot structure without expanding the square footage, city files show. The work includes interior wall, light, and door demolition, alongside exterior canopy removal, new light fixtures, painting, cladding, and landscaping, plus upgrades to mechanical, plumbing, electrical, fire protection, and fire alarm systems, though the time frame to complete the work or to open the store wasn’t immediately known.
