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Photo by Scott Olson/Getty ImagesDick’s Sporting Goods Inc. sank after the Foot Locker chain it acquired last year continued to struggle, raising doubts about the broader sneaker market.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe company now expects net sales to be in a range of US$21.9 billion to US$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 US$2.4 billion.“We’re going to go through some pain,” Dick’s chairman Ed Stack said on a call with analysts.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againDick’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 per cent, the biggest intraday drop since 2023. The stock had declined about nine per cent this year through Monday’s close, compared with a 12 per cent 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 per cent.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 per cent last quarter, while Dick’s stores posted almost five per cent 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 United States consumers who have become more choosy amid rising costs. On the call, the company cited macroeconomic concerns weighing on profitability. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.