Dick's Sporting Goods, parent company of Foot Locker, suffered this Tuesday the biggest stock market crash in its history, plummeting around 30% after releasing second-quarter accounts that fell below market expectations.
At the close of the previous session, the shares of the American company were trading at $179.33, but during the day they were traded around $126.7 per share, which implies a decline of 29.3% in just one session.
In the second quarter ending August 1, net profit reached $315 million (€270 million), representing a decrease of 17% compared to the same period of the previous fiscal year.
In contrast, net sales surged 53.2%, reaching $5.587 billion (€4.785 billion), driven by the accounting integration of the Foot Locker business, acquired just over a year ago and not included in the comparable quarterly accounts.
Comparable sales at Dick's stores increased by 4.9%, while Foot Locker's revenue declined by 3.6% year-on-year, resulting in an aggregate increase of 2.1%.
Given this uneven performance, the company has decided to cut its revenue forecasts for Foot Locker for the entirety of 2026, now placing them in a range of between $7.4 billion and $7.5 billion (between €6.340 billion and €6.425 billion), about 2% lower than previously expected.
"The Dick's business recorded a strong second quarter with widespread growth across all categories. As the quarter progressed, conditions in some segments of the athletic footwear and apparel market became increasingly favorable to promotions, so we took steps to maintain competitive prices and thus protect and consolidate our leadership position," stated Dick's CEO, Ed Stack.
"This environment had a more significant impact on the Foot Locker business, given its greater exposure to classic footwear models and its higher dependence on footwear launches and retro products. Not only were there fewer launches in the second quarter, but these launches performed worse than expected both by the sector and by ourselves. As a result, we are adopting a more cautious outlook for the rest of the year," he added.