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Why Is Dick's (DKS) Up 2.1% Since Last Earnings Report?
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A month has gone by since the last earnings report for Dick's Sporting Goods (DKS - Free Report) . Shares have added about 2.1% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Dick's due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for DICK'S Sporting Goods, Inc. before we dive into how investors and analysts have reacted as of late.
DICK'S Sporting Reports Soft Q2 Earnings
DICK'S Sporting reported second-quarter fiscal 2026 results, with adjusted earnings per share of $3.53 missing the Zacks Consensus Estimate of $3.78. Revenues of $5.59 billion fell short of the consensus estimate of $5.63 billion but increased 53.2% year over year, supported by the Foot Locker acquisition and strength in the DICK’S Business.
Consolidated comparable sales increased 2.1%. The company delivered 4.9% comparable sales growth for the DICK’S Business, driven by higher average ticket, transactions and broad-based category gains across categories. Management highlighted broad-based growth across footwear, apparel and hardlines, along with strong results from the 2026 FIFA World Cup. The DICK’S Business also gained market share as growth outpaced the broader industry by roughly 200 basis points.
DKS Faces Footwear Headwinds
The Foot Locker Business generated revenues of $1.74 billion in the quarter, but pro forma comparable sales declined 3.6%. The segment was affected by weaker demand for legacy footwear silhouettes, fewer product launches and softer consumer response to launches during the quarter.
DICK'S Sporting noted that inventory pressure across the industry created a more promotional environment. The company increased pricing investments to remain competitive and protect its market position, which weighed on margins.
DKS Reports Lower Margins From Higher Costs
Adjusted gross profit was $1.9 billion, or 34.1% of sales, down 300 basis points year over year. The decline reflected the mix impact from the Foot Locker Business, promotional activity in athletic footwear and apparel, and higher fuel and supply-chain costs.
Selling, general and administrative expenses increased 65% year over year to $1.4 billion on a non-GAAP basis. The increase included $477 million from the addition of the Foot Locker Business, along with investments in World Cup marketing, digital initiatives and in-store experiences.
DICK'S Sporting’s Financial & Other Details
DKS ended the quarter with $914 million in cash and cash equivalents, inventories of $5.6 billion and no borrowings under its $2 billion unsecured credit facility. The company also maintained its capital investment plans, expecting approximately $1.4 billion in net capital expenditures for fiscal 2026.
The company continued expanding its strategic growth platforms, including House of Sport, Field House and GameChanger. During the quarter, DICK’S opened five House of Sport locations and eight Field House locations, with plans for approximately 14 House of Sport and 20 Field House openings in fiscal 2026.
DKS Updates Fiscal 2026 Outlook
For fiscal 2026, DKS now expects consolidated net sales of $21.9-$22.2 billion and adjusted earnings per share of $11.00-$12.00 compared with the earlier anticipation of $13.50-$14.50. Earlier, the company had expected net sales of $22.1-$22.4 billion.
The DICK’S Business comparable sales outlook remains positive at 2.5-4%, while the Foot Locker Business comparable sales outlook was reduced to negative 2% to flat. The company expects the Foot Locker Business to post an operating loss of $80-$40 million.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -51.05% due to these changes.
VGM Scores
At this time, Dick's has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Dick's has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
View the Zacks #1 Rank List
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Why Is Dick's (DKS) Up 2.1% Since Last Earnings Report?
A month has gone by since the last earnings report for Dick's Sporting Goods (DKS - Free Report) . Shares have added about 2.1% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Dick's due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for DICK'S Sporting Goods, Inc. before we dive into how investors and analysts have reacted as of late.
DICK'S Sporting Reports Soft Q2 Earnings
DICK'S Sporting reported second-quarter fiscal 2026 results, with adjusted earnings per share of $3.53 missing the Zacks Consensus Estimate of $3.78. Revenues of $5.59 billion fell short of the consensus estimate of $5.63 billion but increased 53.2% year over year, supported by the Foot Locker acquisition and strength in the DICK’S Business.
Consolidated comparable sales increased 2.1%. The company delivered 4.9% comparable sales growth for the DICK’S Business, driven by higher average ticket, transactions and broad-based category gains across categories. Management highlighted broad-based growth across footwear, apparel and hardlines, along with strong results from the 2026 FIFA World Cup. The DICK’S Business also gained market share as growth outpaced the broader industry by roughly 200 basis points.
DKS Faces Footwear Headwinds
The Foot Locker Business generated revenues of $1.74 billion in the quarter, but pro forma comparable sales declined 3.6%. The segment was affected by weaker demand for legacy footwear silhouettes, fewer product launches and softer consumer response to launches during the quarter.
DICK'S Sporting noted that inventory pressure across the industry created a more promotional environment. The company increased pricing investments to remain competitive and protect its market position, which weighed on margins.
DKS Reports Lower Margins From Higher Costs
Adjusted gross profit was $1.9 billion, or 34.1% of sales, down 300 basis points year over year. The decline reflected the mix impact from the Foot Locker Business, promotional activity in athletic footwear and apparel, and higher fuel and supply-chain costs.
Selling, general and administrative expenses increased 65% year over year to $1.4 billion on a non-GAAP basis. The increase included $477 million from the addition of the Foot Locker Business, along with investments in World Cup marketing, digital initiatives and in-store experiences.
DICK'S Sporting’s Financial & Other Details
DKS ended the quarter with $914 million in cash and cash equivalents, inventories of $5.6 billion and no borrowings under its $2 billion unsecured credit facility. The company also maintained its capital investment plans, expecting approximately $1.4 billion in net capital expenditures for fiscal 2026.
The company continued expanding its strategic growth platforms, including House of Sport, Field House and GameChanger. During the quarter, DICK’S opened five House of Sport locations and eight Field House locations, with plans for approximately 14 House of Sport and 20 Field House openings in fiscal 2026.
DKS Updates Fiscal 2026 Outlook
For fiscal 2026, DKS now expects consolidated net sales of $21.9-$22.2 billion and adjusted earnings per share of $11.00-$12.00 compared with the earlier anticipation of $13.50-$14.50. Earlier, the company had expected net sales of $22.1-$22.4 billion.
The DICK’S Business comparable sales outlook remains positive at 2.5-4%, while the Foot Locker Business comparable sales outlook was reduced to negative 2% to flat. The company expects the Foot Locker Business to post an operating loss of $80-$40 million.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -51.05% due to these changes.
VGM Scores
At this time, Dick's has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Dick's has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.