BUSINESS

Foot Locker Parent Slashes Outlook, Shares Plunge 27%

PUBLISHED Aug 26, 2026, 7:19 AM ET

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DICK'S Sporting Goods lowered its full-year sales and earnings forecasts on August 25, 2026, triggering a sharp stock drop of up to 31 percent during intraday trading. The company revised its full-year net sales expectation down to a range of $21.9 billion to $22.2 billion from a previous $22.1 billion to $22.4 billion target. Operating profit estimates were cut to $1.45 billion through $1.55 billion, down from $1.69 billion to $1.81 billion. Executive Chairman Ed Stack cited an oversupplied athletic footwear market and softer consumer demand driven by persistent inflationary pressures and geopolitical uncertainty. Performance was weighed down by Foot Locker, which DICK'S acquired in September 2025; pro forma comparable sales for Foot Locker fell 3.6 percent, while core DICK'S stores grew 4.9 percent. The outlook signals margin contraction across the retail sector as companies resort to promotional discounting to address elevated inventory levels

By Sarah Whitman | JQJO News

Timeline of Events

On September 12, 1974 Foot Locker opens its initial specialty store location.
On September 08, 2025 DICK'S completes $2.4 billion acquisition of Foot Locker.
On July 31, 2026 U.S. retail sales drop 0.6 percent monthly.
On August 21, 2026 Walmart reports slowest U.S. quarterly revenue growth.
On August 25, 2026 (07:00 EDT) DICK'S reports second quarter results missing earnings expectations.
On August 25, 2026 (09:30 EDT) DICK'S stock plunges 27 percent at market open.
On August 25, 2026 (16:00 EDT) DICK'S shares close down 30.7 percent at $124.31.
On August 26, 2026 (10:00 EDT) Law firms announce securities investigations following guidance reduction.
On September 15, 2026 Retailers initiate clearance promotions ahead of third quarter end.
On November 24, 2026 Third quarter earnings will confirm Foot Locker turnaround progress.

News Intelligence

DICK'S Sporting Goods shares plunged following reduced full-year financial guidance.
Sustained retail discounting could pressure quarterly operating margins industry wide.
Retail investors, athletic footwear brands, store employees, and mall operators.
Track official corporate SEC filings rather than unverified financial rumors.