Dick's Sporting Goods stock falls 25% as retailer misses expectations, cites 'challenging' footwear market

Dick's Sporting Goods on Tuesday reported quarterly earnings that missed Wall Street expectations and lowered its outlook for Foot Locker amid what it called a "challenging athletic footwear and apparel marketplace."

The company said Dick's stores saw a 4.9% increase in comparable sales for the quarter driven by "broad-based growth" across categories, including strong results from the World Cup.

However, Dick's said Foot Locker saw comparable sales decline by 3.6%, leading the company to revise its full-year outlook for the Foot Locker business to a range of flat to down 2%. It still expects the Dick's business to grow between 2.5% and 4%, but the company lowered its overall net sales outlook for the year from a range of between $22.1 billion and $22.4 billion to a range of between $21.9 billion and $22.2 billion.

The company reduced its consolidated operating income outlook from a previous range of between $1.69 billion and $1.81 billion to a range of $1.45 billion to $1.55 billion.

Here's how Dick's performed in its fiscal second quarter compared with what Wall Street was expecting, according to a survey of analysts by LSEG:

For the period ended Aug. 1, Dick's reported net income of $315 million, or $3.50 per share, down from $381 million, or $4.71 per share, the year prior. Adjusting for one-time items, including its Foot Locker acquisition, Dick's reported $3.53 per share.

Sales rose to $5.59 billion from $3.65 billion in the year-ago period.

"While we are taking a more cautious view of the balance of the year, we remain highly confident in the strength of the DICK'S Business and our long-term opportunity at Foot Locker," CEO Lauren Hobart said in a statement.