Sports shocker: Profit guidance cut at Dick's rattles the sporting goods sector
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Shares of sporting goods retailers fell in early trading on Tuesday after Dick's Sporting Goods (NYSE:DKS) slashed its full-year guidance after a sizable Q2 EPS miss.
Academy Sports and Outdoors (ASO) fell -7.7% during the early session, Foot Locker (FL) dropped 2.7%, Hibbett Sports (HIBB) was down -3.6% and Big 5 Sporting Goods (BGFV) shed 4.6%. In London trading, JD Sports Fashion Plc (OTCPK:JDSPY) declined -2.8%. While Adidas (OTCQX:ADDYY) showed a 1.5% drop in Frankfurt and PUMA SE (OTCPK:PMMAF) shed 1.0%.
The shockwaves were also felt in the athletic apparel sector, with Nike (NKE) down 1.7%, Under Armour (UAA) off 0.8%, Lululemon (LULU) 1.1% lower, Topgolf Callaway Brands (MODG) down 0.9%, and On Holding AG (ONON) clipped by 1.1%.
As for Dick's Sporting Goods (DKS), the stock was down 19.33% at 7:58 a.m. to trade at its lowest level of 2023. The retailer referenced a slowdown in sales in the outdoor category and a high shrink rate (theft) in its report as drags on profits. "We think weâre doing the best we can to try to curtail it with the security that we have in the stores, working with local authorities," noted Chairman Ed Stack.

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