Dick’s Sporting Goods on Wednesday reduced its full-year profit guidance, attributing the move to margin headwinds associated with its Foot Locker acquisition even as the company recorded a notable quarterly sales gain driven by sustained demand for sneakers and apparel.
The retailer now projects consolidated 2026 earnings of $13.27 to $14.27 per diluted share, down from the prior range of $13.70 to $14.70. Despite the lower earnings guidance, Dick’s maintained its overall annual net sales forecast at $22.1 billion to $22.4 billion.
For the quarter ended May 2, the company reported net sales of $5.17 billion, an increase of 62.7% compared with the year-ago period. Management said the rise was supported by steady footwear and apparel demand in addition to higher average ticket and transaction sizes.
On the operational front, Dick’s has initiated an extensive restructuring of the Foot Locker business that includes store closures and inventory clean-ups aimed at streamlining the operations and restoring sales performance. Executive Chairman Ed Stack said the company observed encouraging early signs from Foot Locker in the first quarter, including a return to positive comparable sales and a move back to profitability.
The company reported that it opened 100 remodeled Foot Locker stores globally during the quarter and remains on track to have about 250 remodeled locations completed by the back-to-school selling period. Dick’s said the quarter for those remodeled stores showed double-digit comparable sales gains along with merchandise margin improvement.
Following the update, shares were trading about 3% lower in premarket trading.
Dick’s also adjusted its same-store sales outlook. Annual comparable-store sales are now expected to increase between 2.5% and 4.0%, up from the prior guidance of 2.0% to 4.0%. The Foot Locker business specifically is projected to grow 1.5% to 3.0%, versus the earlier forecast of 1.0% to 3.0%.
Summary of results and guidance:
- Quarterly net sales: $5.17 billion, up 62.7% year-over-year.
- 2026 earnings-per-share guidance: $13.27 to $14.27, lowered from $13.70 to $14.70.
- 2026 net sales guidance: unchanged at $22.1 billion to $22.4 billion.
- Annual same-store sales: now forecast to rise 2.5% to 4.0% (prior 2.0% to 4.0%).
- Foot Locker segment growth outlook: 1.5% to 3.0% (prior 1.0% to 3.0%).
- Remodel progress: 100 remodeled Foot Locker stores opened in the quarter; about 250 remodels targeted by back-to-school.