Dick’s Sporting Goods Inc

Nike could be headed for another "reset moment" when it reports earnings later this week, with Evercore ISI analyst Michael Binetti warning that the sportswear giant may need to signal lower second-half fiscal 2027 revenue. Binetti said Nike has likely seen cancellations or negative order revisions from retailers for Spring 2027 since its last earnings call, which he expects to translate into further negativity in the company's fiscal second-half 2027 revenue outlook, and he argued that with a new CFO joining, it might make sense to lower that outlook on this call. The report lands against a rough backdrop: Nike stock is down about 25% since its last earnings report on May 28, trades near a 52-week low, is off 53% from its year-ago peak, and has seen its market cap roughly cut in half since 2021 highs. Nike projected fiscal first-quarter revenues down by low-to-mid-single-digit percentages and reiterated flat earnings per share growth over the next three quarters, excluding benefits from tariff recovery proceeds, after reporting fiscal fourth-quarter revenue of $11 billion, a 1% reported decline and a 4% currency-neutral drop, with diluted earnings per share of $0.72 inflated by a $0.52 per share one-time tariff recovery benefit. Stifel analyst Peter McGoldrick said in his own preview that risk-reward remains hung up on insufficient consumer demand for new products while Hoops Classics, 18% of revenue, continues to shrink, and that at 17x 2027 calendar year price-to-earnings estimates versus a footwear median of 11x, he sees risk to the multiple if the turnaround timeline slips again. The company also faces the loss of soccer icon Kylian Mbappé, who ended his long-term Nike tie-up this month to join Swiss sports giant On, and a brutal late-August warning from Dick's Sporting Goods tied in part to Nike heavily discounting slow-moving product, while CEO Elliott Hill continues to battle execution issues, changing sneaker preferences, cautious consumers, and hungry competitors like On.

Zacks Investment Research added three stocks to its Zacks Rank #5 (Strong Sell) List for September 22nd. AGI Inc, ticker AGBK, a provider of tech-enabled financial solutions in Brazil, saw its Zacks Consensus Estimate for current-year earnings revised 14.5% downward over the last 60 days. AXIS Capital Holdings Limited, ticker AXS, which offers insurance covering property, workers compensation, professional liability, casualty, and marine and aviation, had its current-year earnings estimate cut 6.4% over the same period. DICK'S Sporting Goods, Inc., ticker DKS, a sporting goods retailer, saw its current-year earnings estimate revised 17.8% downward over the last 60 days.

Stifel analyst Peter McGoldrick slashed his earnings-per-share estimates on Nike by $0.20 for fiscal years 2027 and 2028, citing near-term risk from increased promotional activity on Nike products in the US. McGoldrick said his hang-up on risk-reward remains insufficient consumer demand for new products, while Hoops Classics, which accounts for 18% of revenue, continues to shrink, and he flagged risk to the multiple at 17x CY27E P/E versus a footwear median of 11x if there is another delay to the turnaround timeline. The call adds to a rough stretch for Nike, whose stock is down 44% this year and 51% over the past year, and which will be removed from the S&P 100 today, ending an 18-year streak. Soccer icon Kylian Mbappé ended his long-term business tie-up with Nike last week and announced he will join Swiss sports giant On, while Dick's Sporting Goods warned in late August about its business in part because Nike is heavily discounting slow-moving product. In late June, Nike reported fiscal fourth quarter revenue of $11 billion, a 1% decline on a reported basis and a 4% drop on a currency-neutral basis, with diluted earnings per share of $0.72 distorted by a $0.52 per share one-time benefit from an expected tariff recovery. Nike projected fiscal first quarter revenues to be down by low-to-mid-single-digit percentages and reiterated flat earnings per share growth over the next three quarters, excluding benefits from tariff recovery proceeds, while Evercore ISI analyst Michael Binetti wrote that there are no hints yet that revenues can turn positive in the foreseeable future.

Zacks Investment Research added three stocks to its Zacks Rank #5 (Strong Sell) List for September 11th. DICK'S Sporting Goods, ticker DKS, an omni-channel sporting goods retailer, saw its Zacks Consensus Estimate for current year earnings revised 17.8% downward over the last 60 days. AngloGold Ashanti PLC, ticker AU, a gold mining company operating in Africa, the Americas and Australia, had its current year earnings estimate revised almost 8.6% downward over the same period. Centerspace, ticker CSR, a real estate development company focused on apartment communities, saw its current year earnings estimate revised almost 6.2% downward over the last 60 days.

DICK'S Sporting Goods and several executives are facing a new securities fraud class action lawsuit over disclosures tied to the Foot Locker acquisition, with allegations that investors were misled about Foot Locker's inventory position and the integration of the acquired business. The complaint claims public statements about the acquisition's impact did not accurately reflect operational challenges, raising potential legal, financial, and reputational risks for the company. This legal scrutiny comes shortly after DICK'S reported Foot Locker revenue of US$1,730 million versus analyst expectations of US$1,810 million and cut its full-year 2026 net sales guidance to US$21.9 billion to US$22.2 billion. The lawsuit adds an extra overhang on top of the operational work still required to integrate Foot Locker, and investors will watch the upcoming quarterly report for updates on Foot Locker comparable sales, inventory mix, margin contribution, and any new disclosures on the legal proceedings.

DICK'S Sporting Goods lowered its fiscal 2026 profit outlook after a softer-than-expected second quarter, with adjusted earnings of $3.53 per share missing the Zacks Consensus Estimate of $3.78 and revenues of $5.59 billion trailing the consensus mark of $5.63 billion. The company now expects adjusted earnings of $11.00-$12.00 per share, down from the prior $13.50-$14.50 range, and consolidated net sales of $21.9-$22.2 billion, compared with the earlier $22.1-$22.4 billion outlook. Foot Locker, which generated $1.74 billion in second-quarter revenues, remains the largest pressure point, with DKS now expecting it to post an operating loss of $40-$80 million for fiscal 2026, reversing its prior expectation for $110-$150 million in operating profit. Consolidated adjusted gross profit fell 300 basis points year over year to 34.1% of sales, while adjusted SG&A expenses rose 65% to $1.4 billion, including $477 million tied to Foot Locker. The core DICK'S Business delivered 4.9% comparable sales growth, but pro forma comparable sales for Foot Locker fell 3.6%, and DKS shares have lost 33.2% in the past six months.

DICK'S Sporting Goods reported second-quarter results that showed strong core performance overshadowed by the costly integration of its newly acquired Foot Locker business. Consolidated net sales jumped 53.2% to $5.59 billion, but nearly all of that growth came from the Foot Locker acquisition, while the core DICK'S banner posted a 4.9% comp sales gain and expanded gross margin by 79 basis points. In contrast, Foot Locker's comparable sales fell 3.6%, and the company slashed its full-year earnings guidance to $11 to $12 per share from a prior range of $13.50 to $14.50. Integration charges have already reached $516 million of an expected $750 million total, and consolidated operating margin dropped to 8.1% from 13.02% a year ago. Despite the challenges, hedge fund ownership increased from 48 to 52 funds, and the company reaffirmed cost synergy targets of $100 million to $125 million.

DICK'S Sporting Goods' second-quarter report, which missed Wall Street estimates and included an unexpected forecast cut, sent its shares plunging up to 31% and dragged NIKE, Lululemon, and On Holding down with it. The core DICK'S business showed strength with net sales up 53% year-over-year to $5.59 billion, partly boosted by the 2026 FIFA World Cup and the addition of Foot Locker, while legacy comparable sales grew 4.9%. However, the Foot Locker segment, which DICK'S is integrating, saw pro forma comparable sales decrease 3.6%, and management cited a more promotional athletic footwear market that pressured margins. As a result, DICK'S reduced its full-year operating income guidance from $1.69-1.81 billion to $1.45-1.55 billion and cut adjusted EPS projection to $11.00-12.00, about 19% below Wall Street's $14.20 estimate. Since Foot Locker is a key wholesale partner for NIKE, the news is seen as a real-time report on NIKE's product demand, and NIKE shares fell nearly 3%, adding to a decline of over 75% from its late-2021 high. Institutional positioning diverged, with hedge fund ownership in DICK'S rising from 48 to 52 funds, while NIKE saw a drop from 71 to 56 funds.

DICK'S Sporting Goods shares plunged 31% after the company reported second-quarter fiscal 2026 earnings that missed expectations and cut its full-year outlook. Adjusted earnings per share came in at $3.53, below the Zacks Consensus Estimate of $3.78, while revenues of $5.59 billion fell short of the $5.63 billion estimate but rose 53.2% year over year, boosted by the Foot Locker acquisition. The company lowered its fiscal 2026 adjusted EPS guidance to $11.00-$12.00 from $13.50-$14.50 and reduced its net sales forecast to $21.9-$22.2 billion from $22.1-$22.4 billion, citing a more promotional athletic footwear and apparel market. The Foot Locker Business, which generated $1.74 billion in revenue, saw pro forma comparable sales decline 3.6% due to weaker demand for legacy footwear silhouettes and fewer product launches. Adjusted gross margin fell 300 basis points to 34.1% of sales, reflecting the Foot Locker mix, promotional activity, and higher costs. The company ended the quarter with $914 million in cash and inventories of $5.6 billion, and it continues to expand its House of Sport and Field House locations.

Shares of DICK'S Sporting Goods plummeted 30.7% after the company reported second-quarter fiscal 2026 earnings of $3.53 per share, missing the Zacks Consensus Estimate of $3.78 per share. In contrast, Kura Oncology's shares jumped 9.6% after CEO Troy Wilson revealed in a regulatory filing that he was buying nearly 100,000 shares of common stock. Navitas Semiconductor gained 1.7% after announcing a deal to acquire Claros for $232.8 million in cash and stock. Walmart's shares declined 1% amid a broader retail decline.

Dick's Sporting Goods' stock crash reveals a major problem for struggling Nike, as the retailer's weak earnings and outlook suggest Nike's turnaround under CEO Elliott Hill may be delayed. Dick's executive chairman Ed Stack cited a "footwear hangover" from legacy silhouettes, with new styles from Nike, Adidas, On, and HOKA driving a reset. Dick's second-quarter adjusted EPS of $3.53 missed estimates of $3.76, and the company cut its full-year EPS outlook to $10.94-$11.94 from $13.27-$14.27, sending shares down 30.7% on Tuesday. Nike's own fiscal fourth-quarter revenue fell 1% to $11 billion, with a projected low-to-mid single-digit decline in the first quarter, and its stock has dropped 38% this year. Jefferies analyst Jonathan Matuszewski noted a "domino effect of pricing pressure" from Nike's markdowns, while Evercore ISI's Michael Binetti sees no reason to expand Nike's P/E ratio from 22 times FY27 consensus EPS.

Shares of athletic footwear and apparel makers fell after Dick's Sporting Goods reported weaker-than-expected quarterly earnings and cut its full-year profit outlook, citing rising inventory levels and heavy promotional discounting across the sector. Figs fell 3.8%, Funko fell 3.7%, Caleres fell 3.6%, Nike fell 2.6%, and Genesco fell 3.4%. Retail executives noted that excess inventory in athletic shoes and clothing has led to an increasingly promotional environment, as consumers hesitate to make discretionary purchases without substantial discounts. Footwear product launches also underperformed expectations during the quarter. The retail update has intensified investor worries about persistent headwinds in consumer discretionary spending.

Dick's Sporting Goods reported consolidated net sales of $5.59 billion for its fiscal 2026 second quarter, up 53.2% year over year, driven by a $1.74 billion contribution from the Foot Locker business. DICK'S business comparable sales increased 4.9%, with average ticket up 3.6% and transactions up 1.3%, while Foot Locker pro forma comparable sales declined 3.6%. Consolidated non-GAAP EPS fell to $3.53 from $4.38 a year earlier, and the company lowered its full-year EPS guidance to $11 to $12 from $13.50 to $14.50, citing a more promotional athletic footwear market and higher costs. DICK'S business gross margin expanded 79 basis points, but Foot Locker posted an operating loss of $31.9 million, and the company said the promotional environment is expected to persist through at least the fourth quarter.

Dick's Sporting Goods shares plunged more than 27% after the retailer reported revenue of $5.59 billion, below the $5.65 billion expected by analysts polled by LSEG, citing a challenging footwear market. Dynatrace rose 3% after Morgan Stanley upgraded it to overweight, while Shift4 Payments gained nearly 4% on a Wells Fargo upgrade to overweight. Moderna rallied 13% after Wolfe Research upgraded it to peer perform, and Marvell Technology jumped 5% after Susquehanna and Rosenblatt raised price targets. Advanced Micro Devices gained 5% after Raymond James upgraded it to strong buy with a $641 price target, and Kura Oncology climbed almost 10% after its CEO disclosed buying 100,000 shares. Navitas Semiconductor rose 5% after announcing a $232.8 million deal to acquire Claros.

Dick's Sporting Goods shares are plummeting after the retailer lowered its full-year outlook amid weakness at its recently acquired Foot Locker unit. Apple shares are slightly lower as the tech giant prepares to launch a new version of its Mac mini desktop computer for the first time in almost two years, according to people familiar with the matter. SpaceX shares are higher in the premarket after Elon Musk said the company's first AI satellites, powered by Nvidia chips, will initially launch in the fourth quarter of next year and hit significant scale in 2028.

Dick's Sporting Goods shares plunged more than 22% at the open on Tuesday after the retailer warned of continued pain from a promotional environment in footwear and athletic apparel. The update confirmed a similar warning from JD Sports last week about weaker second-half growth in the sporting goods category. UBS analyst Michael Lasser said the key question is whether these conditions persist and how that will affect earnings power. Barclays kept its Overweight rating, citing strength in the core Dick's business, while Citi remained bullish but called the lowered EBIT margin and Foot Locker sales guidance a big negative surprise. The stock hit a new 52-week low of $136.16 during the session.

Dick's Sporting Goods shares fell 18.23% in premarket trading Tuesday after the retailer missed quarterly estimates and issued a cautious full-year outlook amid a promotional sporting goods backdrop. Comparable sales rose 4.9%, helped by broad-based category growth including strong results from the 2026 FIFA World Cup, while Foot Locker's pro forma comparable sales fell 3.6%. Meta Platforms gained 0.66% premarket on a report that it plans to launch a consumer-facing AI agent in the coming weeks and a new AI model in October. Johnson & Johnson rose 0.49% after the FDA approved a label expansion for its myasthenia gravis therapy Imaavy as a treatment for warm autoimmune hemolytic anemia, potentially making it the first U.S.-approved therapy for wAIHA. Hims & Hers Health edged up 0.26% premarket after tumbling over 8% Monday on reports that Visa will impose nearly $75,000 in penalties in September after thousands of credit card dispute complaints tied to weight-loss subscriptions triggered its inclusion in Visa's Acquirer Monitoring Program.

Investors are watching Tuesday's earnings from Intuit and DICK'S Sporting Goods, along with fresh consumer confidence and new home sales data. Intuit kicks off a big week of tech earnings with fourth quarter results, and analysts expect revenue growth of around 12% driven by strength in global business solutions and continued growth of QuickBooks and Credit Karma. DICK'S Sporting Goods reports amid the ongoing turnaround at Foot Locker, with back-to-school season underway but tight consumer budgets a potential headwind, and analysts expect higher costs to weigh on profits. Economists forecast the August consumer confidence reading to slip slightly from July, while July new home sales are expected to fall to an annualized pace of 620,000.

Dick's Sporting Goods stock tumbled after the retailer slashed its outlook, citing challenging conditions. The move came as the second quarter earnings season nears completion, with Nvidia's Q2 results on Wednesday serving as a keystone to a remarkably strong stretch of corporate reports. According to FactSet data, second quarter earnings for S&P 500 companies are on pace to rise 50% year over year, the highest growth rate since 2021. Artificial intelligence has been the growth engine of that broad-based earnings growth, Bank of America strategists noted. Investors also watched for updates from Dollar Tree, Dollar General, Salesforce, Intuit, Zoom, and Kohl's.

Kuehn Law, PLLC is investigating whether certain officers and directors of Dick's Sporting Goods, Inc. breached their fiduciary duties to shareholders. The investigation follows a federal securities lawsuit alleging that insiders caused the company to misrepresent or fail to disclose that demand in the Outdoor segment was slowing faster than represented, leading to excess inventory, and that touted structural changes did not prevent the need to liquidate excess inventory, which materially hurt profitability. The firm is encouraging investors who purchased DKS shares prior to August 23, 2022 to contact Sophia Anne Silayan at sophiaanne@kuehn.law or call (833) 672-0814. Kuehn Law pays all case costs and does not charge its investor clients, and shareholders are urged to act promptly as there may be limited time to enforce their rights.

Dick's Sporting Goods posted the fastest revenue growth among seven tracked specialty retailers in the first quarter, with sales surging 62.7% year on year to $5.16 billion, beating analyst estimates by 2.1%. Despite also delivering the highest full-year guidance raise in the group, Dick's shares have fallen 6.7% since the report. Bath and Body Works outperformed expectations with a 1.2% revenue beat and the highest guidance raise overall, sending its stock up 17.7%. Best Buy topped estimates by 1.3% on revenue of $8.94 billion and saw its stock jump 32.5%, while Sally Beauty posted the weakest results, missing EPS guidance significantly. Warby Parker exceeded revenue forecasts by 1.3% but issued the weakest full-year guidance update, though its stock still rose 21.9%.

Dick's Sporting Goods reported first-quarter fiscal 2026 adjusted earnings of $2.90 per share, missing the Zacks Consensus Estimate of $2.91 and declining from $3.37 a year ago. Net sales jumped 62.7% to $5.17 billion, beating the $5.06 billion consensus, driven by the Foot Locker acquisition and 6% comparable sales growth in the core Dick's business. Gross margin contracted 411 basis points, while SG&A expenses rose 48.2% to $1.16 billion. For full-year fiscal 2026, the company projects net sales of $22.1 billion to $22.4 billion, with the Dick's segment contributing $14.5 billion to $14.7 billion and the Foot Locker segment adding $7.6 billion to $7.7 billion. The board declared a quarterly dividend of $1.25 per share, payable June 26 to shareholders of record as of June 12.