Dick’s Sporting Goods Cuts 2026 Outlook as Shares Sink 27% on Footwear Inventory Glut
Updated
Updated · Financial Times · Aug 25
Dick’s Sporting Goods Cuts 2026 Outlook as Shares Sink 27% on Footwear Inventory Glut
3 articles · Updated · Financial Times · Aug 25
Summary
Dick’s cut full-year net sales guidance to $21.9bn-$22.2bn from $22.1bn-$22.4bn and lowered operating income to $1.45bn-$1.55bn from $1.69bn-$1.81bn.
Shares fell as much as 27% after the retailer said cautious consumers are pulling back on pricey footwear while the industry carries too much inventory.
Ed Stack said legacy footwear silhouettes and apparel franchises are no longer resonating, leaving Dick’s with a growing backlog tied partly to Foot Locker’s shoe exposure.
July retail sales fell 0.6% and August consumer sentiment dropped sharply, underscoring an affordability squeeze worsened by Trump’s tariffs and higher fuel costs since the Iran war.
Walmart’s recent weakest US sales growth in more than six years and a 5% drop in the S&P consumer discretionary index over the past month point to broader pressure on discretionary spending.