Dick's Sporting Goods falls after cutting annual forecasts

NIKE

25/08/2026 15:27

Updates
** Shares of sportswear retailer Dick's Sporting Goods DKS.N down as much as 25.9% at near three-year low of $132.90
** Stock set for its worst session drop since August 2023 if losses hold
** Co cuts its annual targets and misses Q2 estimates, as bloated inventory and heavy discounting weighed on its Foot Locker business while high fuel costs pressured margins
** Expects annual net sales between $21.9 billion and $22.2 billion vs previous forecast of $22.1 billion to $22.4 billion, adjusted EPS in the range of $11.00 to $12.00 vs prior forecast of $13.50 to 14.50
** "As the quarter progressed, conditions across portions of the athletic footwear and apparel marketplace became increasingly promotional, and we took action to remain competitively priced to protect and grow our leadership position," says CEO Ed Stack
** "Rebuilding of Foot Locker business will probably take longer than anticipated which means the division will create a severe drag on performance in the short term" - Neil Saunders, managing director of GlobalData 
** Shares of other sportswear companies such as Nike NKE.N, Lululemon Atheletica LULU.O fall 3% each 
** Under Armour UAA.N down 2.7%, On Holding 49G.BN fall 2.02%, while Decker Outdoor DECK.N down about 4% 
** Up to last close, DKS stock was down ~9% YTD

 (Reporting by Shania S Thomas and Koyena Das in Bengaluru)
 ((shanias.thomas@thomsonreuters.com))