TCF POST Report
PITTSBURGH, Aug. 25, 2026 — DICK’S Sporting Goods, whose portfolio includes DICK’S Sporting Goods, Golf Galaxy, Public Lands, Going Going Gone! and DICK’S House of Sport, delivered solid second-quarter growth, with its core business gaining market share despite increasingly promotional conditions across athletic footwear and apparel. The performance was partly offset by weakness at the recently acquired Foot Locker Business, prompting a more cautious outlook for the remainder of 2026.
Consolidated net sales reached $5.59 billion in the 13 weeks ended Aug. 1, compared with $3.65 billion a year earlier, reflecting the inclusion of Foot Locker. Foot Locker contributed $1.74 billion in quarterly sales. Consolidated operating income was $441 million, while net income declined 17% to $315 million and diluted EPS fell to $3.50 from $4.71.
The underlying DICK’S Business remained much stronger. Comparable sales increased 4.9% in the quarter and 5.4% in the first half, supported by gains across footwear, apparel and hardlines, higher average ticket and increased transactions. First-half segment profit reached $846.2 million, compared with $835.4 million a year earlier.
Foot Locker, by contrast, recorded a 3.6% decline in proforma comparable sales in Q2 and a 1.6% decline for the first half. Its quarterly sales were $1.74 billion, but the business posted a $31.9 million segment loss, while DICK’S generated $485.2 million of quarterly segment profit. Management cited fewer footwear launches and weaker-than-expected performance from legacy and retro footwear.
Main market: North America
North America remains the principal growth and earnings engine. DICK’S core business delivered 4.9% comparable-sales growth despite rising promotional pressure, with gains across footwear, apparel and hardlines. The company said it continued to gain market share while benefiting from higher transactions and average ticket. DICK’S operated 892 stores, while the Foot Locker Business had 1,531 North American stores at Aug. 1.
The strength of the core operation is reflected in its full-year target of $14.5 billion-$14.7 billion in sales and $1.54 billion-$1.60 billion in segment profit. By comparison, Foot Locker is forecast to generate $7.4 billion-$7.5 billion but remain loss-making in 2026.
Other markets: EMEA and APAC
EMEA and APAC are currently softer parts of the international business. Foot Locker operated 559 stores in Europe at Aug. 1, while its Asia-Pacific network stood at 92 stores. Combined Foot Locker International proforma comparable sales, representing Europe and Asia Pacific, fell 3.3% in Q2 and 2.6% in the first half.
Europe therefore remains an important restructuring market, while APAC provides strategic reach despite weaker current trading. Through Foot Locker, DICK’S now serves the global sneaker market across North America, Europe, Asia and Australia, with additional licensed-store presence in Asia, Europe and the Middle East.
Sourcing and supply-chain pressure
The results underline the importance of sourcing flexibility and inventory discipline. Consolidated inventory reached $5.57 billion, including $3.6 billion for DICK’S and $2.0 billion for Foot Locker; DICK’S Business inventory was up 6% year on year. The company also received $59 million in IEEPA tariff refunds during the quarter related to prior-year tariff costs, highlighting the direct effect of trade policy on merchandise economics.
The supplied company materials do not disclose individual sourcing countries, supplier factories or the share of merchandise sourced from Asia. However, the combination of elevated inventories, tariff exposure and uneven footwear demand makes supplier flexibility, inventory control and product differentiation increasingly important to margins.
Outlook
DICK’S maintained its core-business comparable-sales outlook at 2.5%-4.0% growth, while Foot Locker’s outlook was reduced to -2.0% to 0.0%. Consolidated 2026 sales are expected at $21.9 billion-$22.2 billion, with operating income of $1.45 billion-$1.55 billion.
The results show a clear two-tier market picture: North America is driving growth and profitability, while EMEA and APAC remain recovery markets within the Foot Locker portfolio. The next challenge is to extend DICK’S stronger operating model across the acquired international network while improving product productivity, inventory management and profitability.
