DICK'S Sporting Goods reported second-quarter results below market expectations and lowered its full-year outlook following weakness at Foot Locker. Its share price plunged more than 20% in after-hours trading, raising concerns across the retail and apparel markets.
DICK'S Sporting Goods reported its second-quarter results. Revenue fell short of market expectations, while weak performance at the Foot Locker division led to a reduction in full-year guidance. The share price plunged more than 20% in after-hours trading, with the impact spreading to other stocks including Nike.
Overall second-quarter revenue was $5.59 billion, up year on year but below the market consensus of $5.65 billion. Adjusted EPS was $3.53, below Wall Street's forecast of $3.76, while net income fell to $31.5 million, or $3.50 per share, from $381 million in the year-earlier quarter.
By business segment, the core business remained solid, but Foot Locker's same-store sales fell 3.6% year on year, offsetting earnings growth.
Full-year revenue guidance was lowered to $21.9 billion–$22.2 billion, while consolidated operating income guidance was revised to $1.45 billion–$1.55 billion from the previous range of $1.69 billion–$1.81 billion.
Full-year same-store sales at Foot Locker are expected to be flat to down 2%, while same-store sales growth for DICK'S Sporting Goods' core brands was maintained at 2.5%–4%.
The macroeconomic environment remains challenging, with cautious consumer spending and intensifying price competition. Retailers are increasingly relying on discounts and promotions, heightening concerns about the growth outlook for the sporting goods industry as a whole.