Sporting goods retailer Dick’s Sporting Goods (NYSE: DKS) missed Wall Street’s revenue expectations in Q2 CY2026, but sales rose 53.2% year on year to $5.59 billion. The company’s full-year revenue guidance of $22.05 billion at the midpoint came in 1.3% below analysts’ estimates. Its non-GAAP profit of $3.53 per share was 6.2% below analysts’ consensus estimates.
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Dick's (DKS) Q2 CY2026 Highlights:
- Revenue: $5.59 billion vs analyst estimates of $5.64 billion (53.2% year-on-year growth, 0.9% miss)
- Adjusted EPS: $3.53 vs analyst expectations of $3.76 (6.2% miss)
- The company dropped its revenue guidance for the full year to $22.05 billion at the midpoint from $22.25 billion, a 0.9% decrease
- Management lowered its full-year Adjusted EPS guidance to $11.50 at the midpoint, a 17.9% decrease
- Operating Margin: 7.9%, down from 12.6% in the same quarter last year
- Free Cash Flow Margin: 2.4%, down from 8.1% in the same quarter last year
- Locations: 3,104 at quarter end, up from 889 in the same quarter last year
- Same-Store Sales rose 2.1% year on year (5% in the same quarter last year)
- Market Capitalization: $16.05 billion
"We're proud of our second quarter performance in the DICK'S Business, where we delivered comp sales growth of 4.9% and gained market share despite growing pressure across portions of the athletic footwear and apparel marketplace. Our Q2 results reflect the strength of our athlete-focused strategy, broad differentiated assortment, strong brand partnerships and continued focus on profitable growth opportunities such as House of Sport, GameChanger and DICK'S Media Network. We invested significantly around the FIFA World Cup, and our team delivered outstanding results. 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."
Company Overview
Started as a hunting supply store, Dick’s Sporting Goods (NYSE: DKS) is a retailer that sells merchandise for traditional sports as well as for fitness and outdoor activities.
Revenue Growth
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years.
With $21.15 billion in revenue over the past 12 months, Dick's is one of the larger companies in the consumer retail industry and benefits from a well-known brand that influences purchasing decisions.
As you can see below, Dick’s 18.8% annualized revenue growth over the last three years was excellent as it opened new stores and increased sales at existing, established locations.
This quarter, Dick's achieved a magnificent 53.2% year-on-year revenue growth rate, but its $5.59 billion of revenue fell short of Wall Street’s lofty estimates.
Looking ahead, sell-side analysts expect revenue to grow 7.4% over the next 12 months, a deceleration versus the last three years. We still think its growth trajectory is attractive given its scale and indicates the market is baking in success for its products.
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Store Performance
Number of Stores
A retailer’s store count often determines how much revenue it can generate.
Dick's sported 3,104 locations in the latest quarter. Over the last two years, it has opened new stores at a rapid clip by averaging 131% annual growth, among the fastest in the consumer retail sector.
When a retailer opens new stores, it usually means it’s investing for growth because demand is greater than supply, especially in areas where consumers may not have a store within reasonable driving distance.
Same-Store Sales
A company’s store base only paints one part of the picture. When demand is high, it makes sense to open more. But when demand is low, it’s prudent to close some locations and use the money in other ways. Same-store sales provides a deeper understanding of this issue because it measures organic growth at brick-and-mortar shops for at least a year.
Dick’s demand has been spectacular for a retailer over the last two years. On average, the company has increased its same-store sales by an impressive 3.3% per year. This performance along with its meaningful buildout of new stores suggests it’s playing some aggressive offense.
In the latest quarter, Dick’s same-store sales rose 2.1% year on year. This growth was a deceleration from its historical levels, showing the business is still performing well but losing a bit of steam.
Key Takeaways from Dick’s Q2 Results
We enjoyed seeing Dick's beat analysts’ gross margin expectations this quarter. On the other hand, its full-year EPS guidance missed and its full-year revenue guidance fell slightly short of Wall Street’s estimates. Overall, this was a softer quarter. The stock traded down 12.3% to $157.57 immediately after reporting.
Dick’s latest earnings report disappointed. One quarter doesn’t define a company’s quality, so let’s explore whether the stock is a buy at the current price. If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).
