DICK'S Sporting Goods Sees Healthy Demand as Foot Locker Turnaround Takes Longer

DICK’S Sporting Goods Sees Healthy Demand as Foot Locker Turnaround Takes Longer Written by MarketBeat September 20, 2026 Add As Preferred Source Share Share Share This Article Link copied to clipboard. Close Image from MarketBeat Media, LLC. Key Points DICK’S core business remains healthy: Management said demand is strong for innovative and sport-specific products, including offerings from On, HOKA and Nike, despite slower sales of legacy sneaker styles. The company maintained its comparable-sales outlook while planning continued promotions on older inventory. Foot Locker’s turnaround is taking longer than expected: Weaker retro footwear demand, excess legacy inventory, challenging international conditions and a slower shift toward newer brands have pressured the business. DICK’S expects the transition to require more time but says it is relatively low-capital and is evaluating multiple options. Investments in growth and technology continue: House of Sport stores are generating strong returns, while GameChanger, DICK’S Media and AI tools such as Coach by DICK’S are contributing to long-term productivity and customer engagement efforts. MarketBeat previews top five stocks to own in October . These 3 Stock Charts Just Flashed the Dreaded Death Cross Pattern DICK'S Sporting Goods NYSE: DKS executives said demand for athletic footwear and apparel remains healthy despite slower sales of certain legacy sneaker styles, while the company works to reposition Foot Locker’s assortment and store base following its acquisition. Executive Chairman Ed Stack said concerns that the broader athletic cycle has ended are “overdone,” pointing to continued strength in DICK’S footwear business. He said specialty retailers have been more exposed to slowing demand for high-launch retro footwear, while DICK’S has shifted more quickly toward brands and categories that are gaining consumer interest. Get DICK'S Sporting Goods alerts: Sign Up DICK's Sporting Goods Faces Pain Now for a Bigger Prize “If there’s something new and different out there that the consumer views as different and innovative, it’s doing very well,” Stack said, citing products from On, HOKA and Nike’s running assortment. Legacy footwear promotions expected to continue Stack said traditional versions of certain legacy silhouettes, including Nike Air Force 1 and Dunk styles, slowed materially during the second quarter. However, he said versions with different materials or embellishments have continued to sell strongly, underscoring a consumer preference for newness rather than a broad pullback in footwear demand. Can DICK'S Turn Foot Locker Into a Winner? The company expects aggressive discounting of less-desirable legacy footwear to continue through the remainder of the year. Stack characterized those promotions as a long-term investment intended to retain customers rather than allow them to shop elsewhere for lower-priced products. “We didn’t want to be viewed as high price in the marketplace,” Stack said. “We make investments in our business, not for a quarter or two, but for a lifetime.” President and Chief Executive Officer Lauren Hobart said DICK’S maintained its comparable-sales outlook, though its guidance reflects promotional activity in legacy footwear as well as higher fuel and healthcare costs. She said the company remains bullish on the core DICK’S business and does not expect the challenges facing Foot Locker to spread to its namesake banner. Stack said DICK’S has also benefited from demand outside of traditional sneakers, including Birkenstock, UGG and Timberland products. He described athletic consumers as having distinct needs for sport-specific footwear, running, training, recovery and lifestyle use. Foot Locker transition taking longer than expected On Foot Locker, Stack said the company’s updated outlook reflects a more difficult-than-expected launch and retro footwear environment, weaker conditions in Europe, the Middle East and Africa, and a slower transition into newer brands and product franchises. He said the industry currently has excess supply of certain legacy silhouettes while facing shortages of newer footwear that is resonating with consumers. Manufacturing constraints have limited the availability of some of those newer styles, according to Stack. “We don’t see this as a demand issue whatsoever,” Stack said. “If you’ve got something that’s new and innovative, that consumer will step into the plate to buy that product.” Stack said DICK’S has gained greater visibility across the athletic footwear market through Foot Locker, atmos and its Going, Going, Gone! clearance business. The company can use Foot Locker trends to adjust its DICK’S assortment, while using atmos to observe early product launches and Going, Going, Gone! to manage clearance opportunities, he said. Hobart added that Foot Locker’s trends can emerge ahead of those at DICK’S, giving the company an opportunity to taper purchases of products that may soften. She said the two