Dick's Sporting Goods Plunges 31% After Slashing Guidance on Foot Locker Woes
DKS is trading near its 52-week low of $124 (0.4% above the low) on elevated volume (20× avg).
Summary
Dick's Sporting Goods shares crashed 30.7% to $124.31 on Tuesday, their worst session on record, erasing roughly $5 billion in market value after the company missed Q2 earnings and slashed full-year guidance. Adjusted EPS fell to $3.53 from $4.38 a year ago, missing the $3.77 estimate, while revenue of $5.59 billion also fell short of expectations. The Foot Locker acquisition, completed a year ago, is dragging results: Foot Locker comps dropped 3.6% versus a 4.9% increase for core Dick's stores. Management cut full-year adjusted EPS guidance to $11-$12 from $13.50-$14.50 and lowered sales and operating income outlooks, citing weak athletic footwear demand, stale sneaker styles, and heavy discounting. The company even used $59 million of tariff refunds to fund markdowns, underscoring margin pressure. This follows yesterday's earnings release and guidance cut, but today's record stock decline and additional details on the Foot Locker integration make this a significant negative development. Traders should watch whether the $124 level holds and whether Foot Locker inventory improves in coming quarters.
At the time of this announcement, DKS was trading at $124.55 on NYSE in the Trade & Services sector, with a market capitalization of approximately $11.1B. The 52-week trading range was $124.00 to $244.38. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Wiseek News.