Core Business Up 4.9%. Market Cap Down $4.9 Billion.

On Tuesday, DICK’S Sporting Goods dropped 31% — its worst single session on record — after cutting full-year guidance.

The core DICK’S business grew comparable sales 4.9%, helped by World Cup marketing. Investors did not care.

📉 The damage: Foot Locker, which DICK’S bought for $2.4 billion last year. Foot Locker’s comps fell 3.6%. Its full-year outlook flipped from an expected $110-150M profit to a projected $40-80M loss — a swing of roughly $190 million.

💸 Adjusted EPS guidance: cut from $13.50-14.50 to $11.00-12.00. Market cap lost: $4.92 billion.

Core business up 4.9%. Market cap down $4.9 billion. Same day, same company, opposite direction.

They bought Foot Locker to expand into sneakers. Foot Locker just cost them a third of their stock price in one afternoon.

Womp womp. 💔