Dick’s Sporting Goods says it’s ‘still early in the Foot Locker turnaround’ as it cites footwear challenges

Earnings // August 25, 2026 Dick’s Sporting Goods says it’s ‘still early in the Foot Locker turnaround’ as it cites footwear challenges By Julia Waldow Foot Locker Dick’s Sporting Goods says it remains bullish on its Foot Locker business, even as it lowered its yearly guidance for the segment, citing “challenging conditions” in the athletic footwear market.

On Tuesday, Dick’s Sporting Goods reported that pro forma comps for Foot Locker declined 3. 6% in the second quarter, versus a 0. 6% increase during the first quarter. Dick’s Sporting Goods then slashed its yearly outlook for pro forma comparable sales at Foot Locker to a range of -2% to 0%. Comparatively, the Dick’s business reported 4.

9% comp sales growth, buoyed by World Cup sales and increases in average ticket size and transactions.

On an earnings call, executives attributed Foot Locker’s slower performance to several factors, including a heavily promotional environment, elevated inventory of legacy footwear silhouettes, fewer footwear launches, and challenges in Europe, the Middle East and Africa.

Dick’s Sporting Goods, as a whole, is also dealing with macroeconomic and geopolitical concerns such as higher fuel costs and supply chain headwinds. These, too, “weighed on profitability during the quarter,” executive chairman Ed Stack said.

“But let me be clear: We believe the Dick’s business remains strong, and none of this changes our confidence in the long-term opportunity at Foot Locker,” Stack continued. “We’re still early in the Foot Locker turnaround. We continue to invest to strengthen the business for the long term.” Dick’s Sporting Goods acquired Foot Locker for $2.

4 billion in 2025 as part of its effort to reach more customers and play a greater role in culture. At the time, Stack said Dick’s Sporting Goods was “confident that [it] will be able to prove the Foot Locker acquisition is the right decision.” The combined company operates more than 3,200 stores, plus e-commerce sites across 20 countries.

Despite recent challenges, there are some encouraging signs across Dick’s Sporting Goods. For the second quarter, the entire company reported $5. 587 billion in net sales, an increase of 53. 2% over the prior-year period. Year-to-date net sales were up 57. 6%.

Stack also shared that Foot Locker is seeing strong results from its first major brand campaign in more than a decade and that it has increased payroll for its store associates, known as “Stripers.” Within stores, Foot Locker is making progress on “Fast Break,” its retail remodeling concept that includes clearer storytelling and a more focused shoe wall.

Foot Locker redid 250 stores globally in time for the back-to-school season, and is already seeing “Fast Break” locations outperform legacy stores. Meanwhile, Dick’s “House of Sport” concept is “driving athlete engagement and fueling sales growth,” said Lauren Hobart, president and CEO of Dick’s Sporting Goods.

She also mentioned “outstanding results” from the company’s marketing efforts around the World Cup.

In the last quarter, Dick’s relaunched its membership program, Scorecard, to include a $99-a-year tier, which the company thinks “will increase engagement, drive higher purchase frequency, strengthen loyalty and further reinforce our competitive position,” Hobart said.

Still, Dick’s Sporting Goods executives remain cautious about the rest of 2026 — especially as cash-strapped consumers pull back on discretionary spending or look for the best promotions possible. In the U. S. , retail sales dropped 0. 6% in July, the first decline in nine months. In August, U. S.

consumer confidence hit its lowest level in seven months as gas prices stay elevated. At this time, footwear companies across the globe continue to face headwinds. Earlier this month, JD Sports said that the market for footwear “remained tough ” this last quarter as consumers faced cost-of-living pressures.

Foot Locker also shared it’s expecting greater market pressure as brands turn to discounts, causing a ripple effect throughout the industry. “If a shoe is at a certain price in the marketplace, then we feel we need to be competitively priced,” Stack explained. The footwear sector is facing other challenges, too.

The sector has gotten more competitive over the last two decades, thanks to quick-rising entrants like On and Hoka. This year, shoe brands are struggling as the U. S. -Iran conflict squeezes the global oil supply and drives up the cost of raw materials. And the shoe industry has been particularly hit hard by tariffs, as some 99% of footwear sold in the U. S.

today is imported. (Dick’s Sporting Goods said it has received $59 million in tarif