Dick’s Sporting Goods (DKS) stock fell after earnings despite sales beat — here’s why

TLDR

• Dick’s Sporting Goods reported first-quarter adjusted earnings of $2.90, slightly above analyst estimates of $2.89.
• Revenues were $5.16 billion, exceeding expectations of $5.07 billion
• Full-year EPS guidance was lowered to $13.27-$14.27, down from $13.70 to $14.70.
• Dick’s Business had comparable sales growth of 6.0%; Foot Locker has returned to comp sales growth
• DKS stock fell 2.6% in pre-market trading on Wednesday

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Dick’s Sporting Goods beat revenue expectations in the first quarter but trimmed its full-year earnings forecast, and the market wasn’t happy about it. The DKS fell 2.6% in premarket trading on Wednesday.

DICK’S Sporting Goods, Inc., DKS

The retailer reported adjusted earnings per share of $2.90, just a penny ahead of Wall Street’s forecast of $2.89. Revenue was $5.16 billion, up sharply from $3.18 billion last year and above expectations of $5.07 billion.

The jump in revenue reflects the addition of Foot Locker, which Dick’s acquired and is now integrating into its broader retail operations.

🚨 $DK (DICK’S Sporting Goods) Q1 2026 earnings
Foot Locker integration progresses… DICK comps strong while Foot Locker makes profits 👀

📊 Key Metrics (Q1 2026)
🔹 Consolidated net sales: $5.17 billion + 62.7% YoY 🟢
🔹 GAAP EPS: $3.54 (+9% YoY) 🟢
🔹 Non-GAAP…

— Emmanuel – major investor in technology and artificial intelligence (@EmmanuelInvest) May 27, 2026

Dick’s core business posted comparable sales growth of 6.0% in the quarter. The Foot Locker business has returned to corporate sales growth and profitability, a positive sign of the integration.

Dick’s expanded Foot Locker’s “Fast Break” initiative to approximately 100 stores globally during the first quarter. The company is still on track to reach nearly 250 stores by the back-to-school season.

Earnings guidance affects stocks

Despite the top line outperformance, earnings expectations are what’s driving the stock.

Full-year EPS guidance was updated to a range of $13.27 to $14.27. This is down from the previous range of $13.70 to $14.70.

Non-GAAP EPS guidance remained steady at $13.50 to $14.50, but the midpoint of $14.00 is still below the analyst consensus of $14.30.

Full-year net sales guidance was $22.1 billion to $22.4 billion. The midpoint of $22.25 billion is just below the $22.3 billion Wall Street had expected.

The company also updated its consolidated operating income guidance to $1.69-1.81 billion, down slightly from $1.71-1.83 billion previously.

Corporate sales forecasts get a boost

Not everything in the directive was a step back. rooster It raised its minimum comp sales forecast for both companies.

Dick’s Business’ comp sales growth range moved to 2.5%-4.0%, up from 2.0%-4.0%. The Foot Locker Business comp sales range was raised to 1.5% – 3.0%, from 1.0% – 3.0%.

GAAP EPS for the first quarter was $3.54, compared to $3.24 in the year-earlier quarter. The non-GAAP figure of $2.90 was down from $3.37 a year ago, due in part to the dilutive effect of 9.6 million new shares issued as part of the Foot Locker acquisition.

S&P 500 futures were up 0.3% at the time of the pre-market move, meaning DKS’s decline was stock-specific, rather than a broader market reaction.

DKS was down 2.6% in pre-market trading as of Wednesday morning.