Earnings live updates: Dick's Sporting Goods stock tanks after retailer slashes outlook amid 'challenging conditions'

Dick's Sporting Goods (DKS) stock plummeted by 14% following the retailer's release of underwhelming second quarter results and a lowered full-year outlook. The company cited stiff competition, heavy discounts from rivals, and underwhelming product launches as the key factors contributing to "challenging conditions" for the retail giant.

In response to the poor performance, Dick's adjusted its full-year earnings per share guidance downward, from an estimated $13.27 to $14.27 to a narrower range of $10.94 to $11.94. Additionally, the company reduced its projected 2026 net sales guidance from $22.1 billion to $22.4 billion to $21.9 billion to $22.2 billion.

Despite maintaining its same-store sales guidance for its Dick's business at a 2.5% to 4.0% growth projection, Dick's Sporting Goods further lowered its expectations for Foot Locker's same-store sales growth, now projecting a decline ranging from negative 2.0% to 0.0%. In the most recent quarter, Dick's reported a 2.1% comparable sales growth, down from 2.5% in the same quarter a year ago, with the Foot Locker segment contributing to the slowdown.

The retailer's most recent quarter's adjusted earnings per share stood at $3.53 on revenue of $5.58 billion, falling short of Wall Street's expectations of $3.76 earnings on $5.64 billion in revenue, as reported by S&P Global Market Intelligence.