Dick’s Sporting Goods Stock Drops 6% Despite Q2 Beat

Dick's Sporting Goods (NYSE:DKS) saw its shares drop more than 7% intra-day today despite reporting better-than-expected earnings and revenue for fiscal Q2, alongside an upward revision to its full-year forecast for fiscal 2025.

In the second quarter, the retailer posted earnings per share (EPS) of $4.37, surpassing the Street estimate of $3.83. Revenue for the period reached $3.47 billion, slightly beating the projected $3.44 billion.

The company also reported a gross margin of 36.7%, exceeding analysts' expectations of 35.8%, while comparable sales grew by 4.5%, outpacing the estimated 3.48%.

Following these results, Dick's Sporting Goods raised its full-year EPS forecast to a range of $13.55 to $13.90, up from the previous $13.35 to $13.75, with the Street estimate at $13.83. Revenue for fiscal year 2025 is now expected to range between $13.1 billion and $13.2 billion, just below the consensus forecast of $13.23 billion.

The company also increased its comparable sales growth projection to 2.5% to 3.5%, higher than the prior 2% to 3% range and ahead of the 2.92% estimate.