Dick's Sporting Goods shares crashed 30.7% on Tuesday after Q2 earnings missed estimates and full-year outlook was cut, signaling a major problem for Nike
Dick's Sporting Goods (DKS) reported Q2 adjusted EPS of $3.53, missing estimates of $3.76, and slashed its full-year EPS outlook from $13.27-$14.27 to $10.94-$11.94. Executive chairman Ed Stack noted a "footwear hangover" in the market, with lifestyle sneakers from brands like Nike (NKE) quickly falling out of favor. This has led to aggressive markdowns and pricing pressure across the industry, which analysts believe could signal more pain ahead for Nike, whose stock has already fallen 38% this year.
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