Foot Locker Parent Slashes Outlook, Shares Plunge 27%

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