Dick’s Sporting Goods shares plunge on Foot Locker weakness

Dick’s Sporting Goods shares experienced a significant decline, dropping as much as 31% following second-quarter fiscal 2026 results that missed Wall Street expectations for both revenue and earnings. While the company’s core business showed strength with 4.9% comparable sales growth, the recently acquired Foot Locker segment acted as a major drag on performance.

Foot Locker reported a proforma comparable sales decline of 3.6% and an operating loss, which prompted Dick’s Sporting Goods to slash its full-year adjusted earnings guidance to a range of $11 to $12 per share, down from the previous forecast of $13.50 to $14.50. Management attributed the footwear weakness to a challenging and highly promotional market, noting a “footwear hangover” regarding legacy sneaker silhouettes.

Despite the stock plunge, executives expressed confidence in the long-term integration of Foot Locker, citing potential for expanded scale and consumer data. The company noted that while lifestyle footwear faces a reset, other categories like running and performance shoes, as well as brands like Ugg and Birkenstock, continue to perform well.