A securities class action alleges DICK’S Sporting Goods told investors Foot Locker was set to deliver 1.5% to 3% comparable sales growth, then cut that outlook to negative 2.0% to 0.0%, and DKS shares fell approximately 30% in a single session.

NEW YORK, Sept. 23, 2026 /PRNewswire/ — Levi & Korsinsky, LLP notifies investors in DICK’S Sporting Goods, Inc. (NYSE: DKS) that a class action has been filed on behalf of shareholders who purchased securities between September 8, 2025 and August 24, 2026. Find out if you may be eligible to recover losses. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.

DKS closed at $124.31 per share on August 25, 2026, a one-day decline of $55.02 per share, or roughly 30%. Full-year consolidated net sales guidance was reduced to $21.9 billion to $22.2 billion from $22.1 billion to $22.4 billion. The lead plaintiff deadline is November 3, 2026.

The Promise

The Company closed its $2.5 billion acquisition of Foot Locker on September 8, 2025 and told the market it was positioned to become a global leader in sports retail. Management projected Foot Locker proforma comparable sales growth of 1.5% to 3% for 2026, with accompanying margin expansion. On a May 27, 2026 earnings call, management said of the promotional environment that there was “nothing on the horizon that we’re particularly concerned about.”

The Reality

Results reported on August 25, 2026 showed Foot Locker revenue of $1.73 billion against analyst estimates of $1.81 billion, and adjusted earnings of $3.53 per share against estimates of $3.76. The Company cut Foot Locker’s proforma comparable sales outlook to a range of negative 2.0% to 0.0% and attributed the shortfall to an “increasingly promotional” athletic footwear marketplace and Foot Locker’s “greater exposure to legacy footwear silhouettes.” The lawsuit contends those conditions and that legacy inventory exposure existed while the earlier projections were being repeated to investors.

Promise vs. Actual: By the Numbers

• Foot Locker proforma comparable sales: 1.5% to 3% growth projected; negative 2.0% to 0.0% revised
• Consolidated full-year net sales: $22.1 billion to $22.4 billion projected; $21.9 billion to $22.2 billion revised
• Foot Locker quarterly revenue: $1.81 billion expected; $1.73 billion reported
• Adjusted earnings per share: $3.76 expected; $3.53 reported
• DKS share price: $179.33 before the disclosure; $124.31 after, a loss of $55.02 per share
• Purchase price paid: $2.5 billion for a business the complaint alleges remained dependent on stagnant legacy footwear

What the Lawsuit Alleges About the Gap

“Companies that make specific promises to investors about future performance have an obligation to disclose known risks to those projections. Here, the complaint alleges that guidance for Foot Locker comparable sales moved from growth of 1.5% to 3% to a range of negative 2.0% to 0.0%.” — Joseph E. Levi, Esq.

Submit your information to learn more or call (212) 363-7500.

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Frequently Asked Questions About the DKS Lawsuit

Q: What specific misstatements does the DKS lawsuit allege? A: The complaint alleges DICK’S Sporting Goods made materially false or misleading statements regarding the Foot Locker acquisition, including assurances that Foot Locker’s inventory and promotional challenges had been resolved when the business allegedly remained dependent on stagnant legacy footwear, during the Class Period. When the Company reported second-quarter 2026 results, cut full-year sales guidance, and slashed Foot Locker proforma comparable sales guidance to negative 2.0% to 0.0%, the stock price declined sharply.

Q: When did DICK’S Sporting Goods allegedly mislead investors? A: The Class Period runs from September 8, 2025 to August 24, 2026. The complaint alleges that corrective disclosures revealed information that caused a significant stock decline.

Q: What court was the DKS class action filed in? A: The case was filed in the United States District Court for the Western District of Pennsylvania, governed by the Private Securities Litigation Reform Act of 1995.

Q: What do DKS investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Submit your information for a no-cost, no-obligation evaluation of your potential recovery. No immediate action is required to remain eligible as an absent class member.

Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

Q: What if I already sold my DKS shares, can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.

Q: What does it cost me to participate? A: There is no upfront cost to submit your information and review whether you may be eligible to recover. Should you choose to participate in the securities class action, they are generally handled on a contingency basis, with any attorneys’ fees and expenses subject to court approval.

Q: How long will the lawsuit take to resolve? A: Securities class actions typically take two to four years from initial filing to resolution. Timing depends on the court schedule, case developments, and whether the matter is dismissed, settled, or litigated further.

CONTACT:

Levi & Korsinsky, LLP

Joseph E. Levi, Esq.

Ed Korsinsky, Esq.

33 Whitehall Street, 27th Floor

New York, NY 10004

jlevi@levikorsinsky.com

Tel: (212) 363-7500

Fax: (212) 363-7171

Attorney Advertising. Prior results do not guarantee similar outcomes.

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