Dick's Sporting Goods (DKS) plunged 13% to $157.45 in premarket trading on Tuesday after reporting second-quarter earnings that missed analyst expectations and issuing full-year guidance well below consensus. Adjusted EPS came in at $3.53, down from $4.38 a year ago and below the $3.76-$3.78 Wall Street estimate. Net sales rose 53% year-over-year to $5.59 billion, but that jump was largely driven by the Foot Locker acquisition completed in September 2025, and revenue still fell short of the $5.64-$5.65 billion forecast. Overall same-store sales increased 2.1%, missing the 4% consensus, while Dick's core business posted 4.9% comparable sales growth, slowing from 6% in the first quarter.
The Foot Locker segment was the main weak spot, with proforma comparable sales down 3.6%. Executive Chairman Ed Stack said a more promotional athletic footwear and apparel environment pressured results, especially legacy footwear styles and launch or retro products. The company slashed full-year adjusted EPS guidance to $11.00-$12.00, roughly 19% below the prior $14.20-$14.28 consensus at the midpoint. Full-year revenue guidance was set at $21.9 billion to $22.2 billion, below the $22.35 billion consensus. Dick's also lowered its Foot Locker proforma comparable sales outlook to a range of -2.0% to 0.0%, while maintaining Dick's business growth guidance of 2.5% to 4.0%.
Nike (NKE) fell 2.4% premarket to $40.73, near the lower end of its 52-week range of $38.86 to $79.51, after Dick's flagged weak athletic footwear demand. As a key wholesale partner and one of Nike's most important distribution channels, Dick's commentary added pressure to Nike shares. Nike has been leaning back into wholesale after years of pushing direct-to-consumer, and the combined entity following the Foot Locker acquisition has raised inventory concerns, with a 63% inventory build noted.
Analyst reaction was cautious. Stifel maintained a Hold rating and $45 price target, while RBC Capital kept its Sector Perform rating and $45 target. Goldman Sachs cut its Nike price target from $46 to $42 with a Neutral rating. BTIG remained Buy with a $55 target, and Robert W. Baird held Outperform with a $70 target. The broader analyst consensus price target was $53.53, with 13 Buy, 19 Hold, and four Sell ratings. Institutional ownership stood at 64.25%, with Norges Bank adding a new position worth roughly $829.9 million in Q4. Nike's next quarterly dividend of $0.41 is payable October 1, representing about a 4.0% yield at current prices.
Despite the sharp moves in traditional retail stocks, the news has no direct impact on cryptocurrency markets or digital asset prices.
