This content was published on
August 25, 2026 - 15:46
2 minutes
(Bloomberg) — Dick’s Sporting Goods Inc. sank after the Foot Locker chain it acquired last year continued to struggle, raising doubts about the broader sneaker market.The company now expects net sales to be in a range of $21.9 billion to $22.2 billion in the current fiscal year, down from its previous forecast. The change in outlook was driven by a drop in sales at Foot Locker, which Dick’s bought last year for $2.4 billion.“We’re going to go through some pain,” Dick’s Chairman Ed Stack said on a call with analysts.Dick’s said the footwear market became increasingly promotional last quarter after brands upped discounting on their own websites. The company said legacy sneaker styles aren’t resonating like they once did, while not naming a specific brand. It’s instead seeing a shift to brands such as Ugg and Birkenstock.Dick’s shares fell as much as 23%, the biggest intraday drop since 2023. The stock had declined about 9% this year through Monday’s close, compared with a 12% gain for the S&P 500 Index over the same period.Nike Inc., a major supplier to Dick’s and Foot Locker, saw its stock dropped as much as 4.2%.The results and lower outlook “deepens skepticism about the merits of the acquisition, completed almost a year ago,” Lindsay Dutch, a senior analyst with Bloomberg Intelligence wrote.When the Foot Locker deal was announced in May 2025, there was some criticism from analysts about Dick’s taking on a troubled retailer that would give it more exposure to struggling malls.Foot Locker’s proforma comparable sales fell 3.6% last quarter, while Dick’s stores posted almost 5% growth. The remainder of the year is poised to offer more hurdles with the company saying it expects this elevated discounting to continue through the fourth quarter.Dick’s is also dealing with US consumers who have become more choosy amid rising costs. On the call, the company cited macroeconomic concerns weighing on profitability.Sign up for Bloomberg’s Retail Monitor newsletter for more insights on trends, headwinds and emerging opportunities.(Updates starting in first paragraph.)©2026 Bloomberg L.P.
