Dick’s Stock Plunges 17% After Weak Earnings and Outlook Cut

Dick’s Sporting Goods shares fell sharply Tuesday after the retailer reported weaker-than-expected quarterly results and reduced its outlook, citing a “challenging” U.S. market for athletic footwear and apparel. The decline put the stock on track for its steepest one-day loss in roughly three years.

Shares dropped 16.9% to just below $149 in early trading, putting them on pace for their biggest intraday decline since Aug. 22, 2023, when the stock fell 24.1%.

Dick’s reported quarterly revenue of $5.59 billion and earnings of $3.53 per share. Revenue came in below the $5.64 billion consensus estimate, while earnings per share matched the $3.53 analyst expectation, according to FactSet data.

The company also reduced its sales expectations for Foot Locker after the footwear retailer reported a 3.6% decline in comparable sales. Dick’s now expects Foot Locker sales to fall 2%. The company also adjusted its full-year net sales outlook to a range of $22.1 billion to $22.4 billion.

Dick’s pointed to a “challenging athletic footwear and apparel marketplace” when explaining the revised projections. CEO Lauren Hobart said the company was taking a “more cautious view,” while remaining “highly confident” in Dick’s business strength and the “long-term opportunity” at Foot Locker.

Before Tuesday’s decline, Dick’s shares had already fallen 10.4% this year, adding to the pressure on the retailer as it navigates a difficult environment for athletic footwear and apparel.

The weakness follows a similar setback for JD Sports, the London-listed sports retailer, whose shares dropped more than 13% last week after it reported an almost 7% decline in North American sales. JD Sports attributed the weakness to “weaker core sentiment,” a slower period for high-demand footwear products and “deferred” back-to-school demand.

Dick’s acquired Foot Locker for more than $2 billion last year as part of an effort to expand internationally and strengthen its position in the athletic footwear market. The acquisition has also affected Dick’s finances, with the company reporting nearly $100 million in transaction-related charges last year, including more than $42 million associated with clearing inventory through sales.

Meanwhile, Miniso, the Chinese lifestyle retailer that previously marketed itself as Japan-inspired, was named the fastest-growing retailer in the U.S. over the past year by the National Retail Federation. Miniso reported approximately 53% U.S. sales growth, ahead of Dick’s, which ranked second and appeared on the NRF list for the first time.