Dick’s Sporting Goods reported net sales of $5.59 billion for its second quarter ended August 1, 2026, marking a 53 percent year-on-year increase. The substantial top-line jump reflects the full consolidation of Foot Locker operations following the acquisition. Despite the strong revenue performance, margin pressures and a highly promotional athletic footwear environment weighed on earnings, prompting the company to revise portions of its full-year outlook.
Dick’s Core Business Delivers Broad-Based Growth
The Dick’s business generated $3.85 billion in Q2 net sales, up from $3.65 billion in the same quarter a year ago, driven by broad-based category gains and higher average ticket values. Comparable sales for the Dick’s segment rose 4.9 percent, demonstrating resilience even as competitive pricing pressures intensified across the athletic footwear and apparel marketplace.
Ed Stack, Executive Chairman of Dick’s Sporting Goods, noted that the Dick’s business delivered a strong second quarter with wide-ranging growth across categories. He acknowledged that as the quarter progressed, increasingly promotional conditions in portions of the athletic footwear and apparel marketplace led the company to take action to remain competitively priced in order to protect and grow its leadership position. While these near-term dynamics prompted a revision to 2026 expectations, Stack stated that confidence in the long-term opportunities ahead for both Dick’s and Foot Locker remains unchanged.
Lauren Hobart, President and Chief Executive Officer, echoed this view, pointing to the athlete-focused strategy, a broad and differentiated assortment, strong brand partnerships, and continued investment in growth platforms including House of Sport, GameChanger, and Dick’s Media Network as key contributors to the quarter’s results. Hobart stated that while a more cautious view is being taken for the remainder of the year, confidence in the strength of the Dick’s business and the long-term Foot Locker opportunity remains high.
Foot Locker Segment Faces Headwinds
Foot Locker contributed $1.74 billion in net sales during the quarter, though the segment recorded a loss of $32 million. Proforma comparable sales for the Foot Locker business declined 3.6 percent, reflecting ongoing challenges in legacy footwear categories and fewer successful product launches during the period. International proforma comparable sales for Foot Locker, spanning Europe and Asia Pacific, also declined 3.3 percent in Q2.
Profitability and Margins Under Pressure
Consolidated net income for the quarter fell 17 percent year-on-year to $315 million. Diluted earnings per share came in at $3.50, compared to $4.71 in the prior-year quarter, a decline attributed to the dilutive impact of shares issued as part of the Foot Locker acquisition. Gross profit for the quarter reached $1.94 billion, representing a margin of 34.8 percent, down from 37.1 percent in Q2 FY25.
Operating income margin contracted to 7.9 percent from 12.4 percent in the year-ago period, impacted by increased promotional activity, integration-related costs, and charges tied to a review of unproductive assets within the Foot Locker business.
Capital Allocation and Balance Sheet
Year-to-date, Dick’s Sporting Goods invested $743 million in gross capital expenditures, with net capex standing at $614 million. The company ended the quarter with $914 million in cash and cash equivalents, reflecting a stable liquidity position as integration efforts continue.
Revised FY26 Outlook
On the strength of the Dick’s business performance, the company raised its consolidated net sales guidance for FY26 to a range of $21.9 billion to $22.2 billion. Operating income is expected between $1.45 billion and $1.55 billion, with diluted earnings per share projected in the range of $10.94 to $11.94.
The Dick’s business segment is forecast to deliver positive comparable sales growth of 2.5 to 4 percent for the full year. The Foot Locker segment outlook was revised downward, with comparable sales now expected to decline between 2.0 percent and flat, and a segment loss of $40 million to $80 million now projected. Gross capital expenditures for FY26 are targeted at approximately $1.6 billion.
