DICK'S Sporting Q2 Earnings Coming Up: What Surprise Awaits Investors?

As DICK’S Sporting Goods Inc. DKS prepares to announce its second-quarter fiscal 2026 earnings on Aug. 25, 2026, investors are closely watching for insights into its performance this season.

DKS is expected to register a year-over-year sales increase in the quarter under review. The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $5.6 billion, indicating a surge of 54.6% from the year-ago quarter’s reported figure. 

However, the consensus estimate for fiscal second-quarter earnings is pegged at $3.80 per share, which suggests a dip of 13.2% from the year-ago reported number. The consensus mark has been stable in the past 30 days.

In the last reported quarter, the company delivered a negative earnings surprise of 0.3%. It has a trailing four-quarter earnings surprise of 0.9%, on average.

Factors to Note About DKS’ Upcoming Release

DICK’S Sporting’s quarterly results are likely to reflect gains from solid strategic efforts, brand strength and market share gains. Also, strong comparable sales (comps) and healthy transaction growth are expected to have acted as tailwinds. The company has also been enhancing service levels through its digital and store experiences to cater well to the athletes’ needs.

The company continues to expand its House of Sport and Field House concepts, which are helping drive stronger customer engagement, sales and brand partnerships. DKS is also increasing marketing investments, which could support traffic and comps. Another key focus is strengthening merchandise through differentiated products, greater innovation and deeper relationships with major national and emerging brands. 

The company is also expanding its higher-margin vertical brands, which could support gross-margin improvement. Investments in digital capabilities, including its website, app and DICK’S AI-powered digital agent, are aimed at improving the omnichannel customer experience. Meanwhile, GameChanger and the DICK’S Media Network continue to provide additional engagement and revenue opportunities. The Foot Locker turnaround is another important strategic driver. DICK’S is expanding the Fast Break store-remodel program, improving merchandise presentation, restoring apparel offerings and strengthening inventory availability. All these factors are likely to drive DKS’ top-line results in the quarter under review.

However, DICK’S Sporting continues to face a challenging macroeconomic and geopolitical backdrop, which could weigh on its profitability. The operating environment remains dynamic, with ongoing uncertainty related to tariffs, global trade and broader consumer spending trends. Tariff-related inflation and sourcing costs may also pressure margins if promotional activity intensifies or consumer demand softens. In addition, elevated selling, general and administrative (SG&A) costs remain concerning. Our model expects adjusted SG&A to increase 63.8% in the second quarter of fiscal 2026. Such factors are likely to have hurt the company’s profitability in the to-be-reported quarter.

What the Zacks Model Unveils for DKS

Our proven model does not conclusively predict an earnings beat for DICK'S this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

DICK'S Sporting has an Earnings ESP of -0.18% and a Zacks Rank of 3.

DICK'S Sporting’s Valuation Picture

DICK'S Sporting has a forward 12-month price-to-earnings ratio of 12.41, which is below the five-year high of 17.28x and the Retail - Miscellaneous industry’s average of 15.53x.

The recent market movements show that DICK'S Sporting’s shares have lost 8.3% in the past six months compared with the industry's 16.4% decline.

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Three Stocks With the Favorable Combination

Here are three companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:

Five Below, Inc. FIVE currently has an Earnings ESP of +20.8% and a Zacks Rank of 2. FIVE is likely to register a top-line increase when it reports second-quarter fiscal 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.21 billion, indicating a 17.9% rise from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here. 

The consensus estimate for Five Below’s earnings is pegged at $1.28 per share, implying a 58% jump from the year-ago quarter. FIVE delivered an earnings surprise of 70.1% in the last four quarters.

Dollar Tree, Inc. DLTR has an Earnings ESP of +0.05% and a Zacks Rank of 2. DLTR is likely to register a top and bottom-line increase when it reports second-quarter fiscal 2026 numbers.

The Zacks Consensus Estimate for quarterly earnings per share of $1.11 suggests an increase of 44.2% from the year-ago fiscal quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $4.9 billion, suggesting growth of 6.3% from the prior-year fiscal quarter’s reported figure. DLTR has a trailing four-quarter earnings surprise of 32.1%, on average.

Williams-Sonoma, Inc. WSM has an Earnings ESP of +3.05% and a Zacks Rank of 3. WSM is likely to register a top and bottom-line increase when it reports second-quarter fiscal 2026 numbers.

The Zacks Consensus Estimate for quarterly earnings per share of $2.05 suggests an increase of 2.5% from the year-ago fiscal quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $1.9 billion, suggesting growth of 4.1% from the prior-year fiscal quarter’s reported figure. WSM has a trailing four-quarter earnings surprise of 7.2%, on average.

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This article originally published on Zacks Investment Research (zacks.com).

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