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DICK’S reported Q2 FY2027 revenue of $5.6 billion, below consensus by −0.90%, although both reported revenue and the estimate round to $5.6 billion. Adjusted earnings per share of $3.53 missed the $3.78 consensus estimate.
Revenue rose 53.2% from $3.6 billion a year earlier. The filing says Foot Locker contributed $1.74 billion in quarterly sales, while comparable sales at the DICK’S business rose 4.9%, helped by higher spending per transaction and more transactions. Foot Locker’s pro forma comparable sales fell 3.6%, and CFO Navdeep Gupta reported a $31.9 million operating loss for that business.
Diluted earnings per share fell to $3.50 from $4.71 a year earlier. The filing says the current quarter included acquisition and store-model redesign costs, offset by tariff refunds; the prior-year quarter included gains on a pre-acquisition investment in Foot Locker securities.
Gross margin fell to 34.8% from 37.1%, which the filing primarily attributes to Foot Locker’s lower gross margin. Operating margin fell to 7.89% from 12.4%, while free cash flow was $133.0 million, compared with $296.2 million a year earlier.
| Q2 FY2027 | Q2 FY2026 | Change | |
|---|---|---|---|
| Revenue | $5.6 billion | $3.6 billion | 53.2% |
| Diluted EPS | $3.50 | $4.71 | −25.7% |
| Gross margin | 34.8% | 37.1% | −2.3 percentage points |
| Operating margin | 7.89% | 12.4% | −4.5 percentage points |
| Free cash flow | $133.0 million | $296.2 million | −55.1% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $3.53 | $3.78 | Missed by 6.61% |
| Revenue | $5.6 billion | $5.6 billion | Missed by 0.90% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
CEO Lauren Hobart said the DICK’S business saw growth across footwear, apparel and hardlines, with both average ticket and transactions contributing to comparable sales. Asked about demand beyond the World Cup, Hobart said the business also grew across its portfolio excluding the event.
Executive Edward Stack said some brands had become more promotional on their own sites and that those discounts had spread across the market. He said DICK’S was participating in promotions to protect market share, but added: “we are in no way leading the price issues here.” Stack said shoppers were looking for new products as some established footwear and apparel styles slowed.
CFO Navdeep Gupta said growth at DICK’S Media Network and GameChanger, together with tariff refunds, helped the DICK’S business expand gross margin despite promotional pressure and higher fuel and supply-chain costs. Gupta said the company had reinvested tariff benefits to remain competitively priced and offset costs. He also cited World Cup marketing, digital and in-store investments, and higher employee healthcare costs as drivers of expenses.
On Foot Locker, Gupta said fewer launches and weaker consumer response affected the quarter. Stack said its reliance on footwear and established styles made the promotional environment more consequential for its margins; he also described Europe, the Middle East and Africa as more competitive and promotional than the U.S. When asked about that region’s contribution, Stack declined to quantify it, saying it was “much more impactful than the U.S.”
For the coming quarter, Gupta said DICK’S expected gross-margin pressure to be most pronounced in Q3. Asked about back-to-school trading, Stack declined to provide an intra-quarter update and said it was embedded in the company’s full-year outlook.
Guidance
In its filing, DICK’S said it lowered its sales and profit outlook because of macroeconomic conditions and a more challenging athletic footwear and apparel marketplace. The filing says the company now expects fiscal 2026 net sales of $21.9 billion to $22.2 billion and diluted earnings per share of $10.94 to $11.94.