Dick's and Nike Struggle Amid Athleisure Market Woes

Dick's Sporting Goods (NYSE:DKS) and Nike (NYSE:NKE) have been struggling this year, with both stocks trading far below their January levels. Dick's has plummeted 36% in 2026, while Nike is down around 37%. The two companies' problems overlap, particularly within athletic footwear, where consumer demand remains uneven.

Dick's recent acquisition of Foot Locker has added to its woes. The company missed second-quarter earnings expectations and cut its full-year outlook, with Foot Locker responsible for much of the disappointment. Comparable sales at Foot Locker fell 3.6% during the quarter, while management now expects the acquired operation to post a segment loss between $40 million and $80 million in 2026.

However, Dick's core business remains relatively healthy, with same-store revenue increasing 4.9% during the second quarter. Management maintained its full-year forecast calling for gains between 2.5% and 4%. Wall Street still sees potential in DKS, with a Moderate Buy consensus rating based on 19 analysts covering the stock.

Nike has been working to restore growth after a direct-to-consumer strategy weakened wholesale relationships. The company's fiscal fourth-quarter revenue fell 1%, while currency-neutral sales decreased 4%. However, Nike Direct revenue dropped 7%, and China remains one of its toughest problems, with Greater China currency-neutral sales falling 17% during the quarter.