Dick's Sporting Goods shares plunge 30% after missing quarterly earnings expectations

Dick's Sporting Goods on Tuesday reported quarterly earnings that missed Wall Street expectations and lowered its outlook for Foot Locker amid what it called a "challenging athletic footwear and apparel marketplace."

Dick's stock fell 30% in trading Tuesday, its worst day since 2023.

The company said Dick's stores saw a 4.9% increase in comparable sales for the quarter driven by "broad-based growth" across categories, including strong results from the World Cup.

However, Dick's said Foot Locker saw comparable sales decline by 3.6%, leading the company to revise its full-year outlook for the Foot Locker business to a range of flat to down 2%. It still expects the Dick's business to grow between 2.5% and 4%, but the company lowered its overall net sales outlook for the year from a range of between $22.1 billion and $22.4 billion to a range of between $21.9 billion and $22.2 billion.

The company reduced 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.

Here's how Dick's performed in its fiscal second quarter compared with what Wall Street was expecting, according to a survey of analysts by LSEG:

Earnings per share: $3.53 adjusted vs. $3.76 expected

Revenue: $5.59 billion vs. $5.65 billion expected

For the period ended Aug. 1, Dick's reported net income of $315 million, or $3.50 per share, down from $381 million, or $4.71 per share, the year prior. Adjusting for one-time items, including its Foot Locker acquisition, Dick's reported $3.53 per share.

Sales rose to $5.59 billion from $3.65 billion in the year-ago period.

"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.

The company also said it received $59 million in tariff refunds during the quarter and $2.1 million in related interest income.

The earnings come as Dick's is in the midst of implementing a turnaround for Foot Locker, which has previously weighed on the company's bottom line. Dick's has sought to refine Foot Locker's strategy to return to growth, especially at a time when sportswear is booming.