CNBC’s Jim Cramer said Tuesday. dicks sporting goodsThe historic 30% plunge could represent a buying opportunity for investors looking forward to near-term challenges for the retailer.
“If you don’t own Dick’s, you dodged a bullet today, but considering the last time the stock price crashed, you might want to be a buyer in the coming months because this company has a history of coming back from the dead,” the “Mad Money” host said, referring to the company’s August 2023 earnings report, in which Dick’s stock fell 24% after the retailer missed expectations. The stock took another two months to hit a bottom of about $100 on October 27th, then rose about 150% over the next 15 months to $250.
Before Tuesday, it was Dick’s worst day ever after profits plummeted three years ago. Now, Dick’s has reported lower-than-expected second-quarter profits and sales, and has significantly lowered its full-year profit outlook. Mr. Kramer said the results showed that while the biggest problems were centered around recently acquired Foot Locker, Dick’s core business remained relatively strong.
Dick’s comparable sales rose 4.9%, in line with expectations, while Foot Locker comps fell 3.6% versus Wall Street’s expectations for a modest increase. The company also lowered its full-year sales forecast for Foot Locker, but left its comparable sales forecast for Dick’s unchanged.
Mr. Kramer said Foot Locker’s decline reflects a broader slowdown in athletic footwear and apparel overall. He said that as consumer tastes change, inventories of certain legacy sneaker styles and apparel brands have built up, prompting further discounts across the industry.
Still, Kramer acknowledged that the company’s acquisition of Foot Locker, which was completed in September 2025, is increasingly looking like a failure.
“Obviously they’re having a hard time getting this business back on its feet,” Kramer said. “This will come as no surprise to anyone who was following Foot Locker stock prior to the tender offer.”
He warned that next or second quarter could continue to be difficult as retailers grapple with excess inventory. But Tuesday’s decline also reset expectations and cheapened the stock, with Dick’s now trading at a 2027 P/E of about 9x.
Long term, Kramer said he still likes Dick’s position as one of the few remaining large sporting goods retailers in the market.
“I don’t want to give up on Dick here,” Kramer said. “Long-term, I believe so, because even if we’re on par with the struggling Foot Locker, we’re the only sporting goods retailer left with any serious scale.”
