Dick's Sporting Goods cuts 2026 EPS guidance after Q2 sales gain

Dick's Sporting Goods (NYSE: DKS ) released second-quarter financial results and hosted an earnings call on Tuesday.

Read the complete transcript below.

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For comprehensive financial data and transcripts, visit Access the full call at Summary Dick's Sporting Goods reported strong sales growth with a 4.9% comp sales increase, attributed to market share gains and positive responses to strategic investments like those in the World Cup.

The company faced margin pressures due to an aggressive promotional environment, particularly in the footwear and apparel sectors, which impacted overall profitability.

Despite challenges, particularly with Foot Locker's performance in EMEA, the company remains optimistic about long-term opportunities and plans to continue investing in marketing and store expansion initiatives.

The Dick's business saw broad-based growth across categories, with strategies focused on enhancing omnichannel experiences, expanding House of Sport and Field House locations, and strengthening brand partnerships.

For 2026, the company revised its earnings per share guidance downward due to the challenging market conditions but maintained its sales expectations.

Management highlighted the importance of maintaining competitive pricing to protect market share and reiterated confidence in the long-term growth potential of both Dick's and Foot Locker.

Full Transcript OPERATOR Second quarter 2026 earnings call.

After today's prepared remarks, we will host a question-and-answer session.

If you would like to ask a question, please press star one to raise your hand.

To withdraw your question, press star one again.

I will now hand the conference over to Nate Gilch, Vice President of Investor Relations.

Please go ahead.

Nate Gilch, Vice President of Investor Relations Good morning, everyone, and thank you for joining us to discuss our second quarter 2026 results.

On today's call will be Ed Stack, our Executive Chairman, Lauren Hobart, our President and Chief Executive Officer, and Navdeep Gupta, our Chief Financial Officer.

A playback of today's call will be archived on our Investor Relations website located at investors.dicks.com for approximately 12 months.

As a reminder, we will be making forward-looking statements which are subject to various risks and uncertainties that could cause our actual results to differ materially from these statements.

Any such statements should be considered in conjunction with cautionary statements in our earnings release and risk factor discussions in our filings with the SEC, including our last annual report on Form 10-K, as well as cautionary statements made during this call.

We assume no obligation to update any of these forward-looking statements or information.

Please refer to our Investor Relations website to find the reconciliation of our non-GAAP financial measures referenced in today's call.

I also want to note a couple of admin items.

First, a quick reminder in our comparable sales reporting, Foot Locker will be included in our quarterly comp calculations beginning in Q4 of 2026, which will mark the start of their 14th full month of operations post acquisition.

And finally, for future scheduling purposes, we are tentatively planning to publish our third quarter 2026 earnings results on November 24, 2026.

With that, I'll now turn the call over to Ed.

Ed Stack, Executive Chairman Thanks, Nate.

Good morning, everyone.

From a sales perspective, the second quarter was strong, particularly for the Dick's business, which delivered nearly a 5% comp sales gain.

We continued to gain market share and saw many areas of strength across our portfolio.

We're also encouraged by the response to our World Cup investments, which we believe positions us to benefit from increasing soccer participation over the long term.

While the Dick's business delivered the sales and profitability we expected, as the quarter progressed it became clear that inventory levels were building up across parts of the industry, leading to a much more promotional environment.

This pressured our overall company earnings.

Consumer preferences are evolving with athletes increasingly responding to newness, innovation and a broader set of brands.

As demand continued to shift during the quarter, inventory built up in parts of the industry, particularly within certain legacy footwear silhouettes and apparel franchises that simply aren't resonating the way they once did.

The inventory built up across the industry supply chains and across the retail marketplace, which led to an increasingly aggressive promotional environment.