Shares of Dick’s Sporting Goods and sneaker maker Puma each fell Tuesday as both companies issued downbeat guidance for the year reflecting uncertainty over the effect of the Trump tariffs.
Dick’s, the largest sporting goods retailer in the U.S., reported strong fourth quarter 2024 results that beat expectations. But Wall Street felt the forecast for 2025 was poor. Dick’s says it will make between $13.6 billion and $13.9 billion in sales this year, compared to $13.4 billion in 2024, but noted the effect of tariffs aren’t being taken into consideration in that outlook.
“There is a lot that is still evolving, and that is still unknown from a tariff perspective. So that is not specifically contemplated in our guidance,” Dick’s chief financial officer Navdeep Gupta said during a call with analysts Tuesday morning.
Management struck a bullish note on American consumers, however. “We are not seeing a weaker consumer now,” CEO Lauren Hobart said on the same call. “Our consumer has proven that in times of stress and uncertainty that they are leaning into being outside, going for a run or walk, going to watch team sports. It’s become much more of a necessity than a discretionary item, and it makes sense, because it is a way for people to find calm in an otherwise uncertain time frame.”
Traders were unconvinced, lopping $12.05 off Dick’s share New York Stock Exchange price on the highest trading volume in nine months. The company finished the day at $198.97, a three-month low. Shares are down more than 20% since hitting an all-time high in January this year.
The move comes amid broader bearishness in the U.S. stock market. After the S&P 500 index closed at an all-time high of 6,114.15 on Feb. 19, the index has fallen 12 of the subsequent 14 trading days through Tuesday, losing more than 9% of its value. The bearish run has been fueled primarily by uncertainties of tariffs, their impact on American consumer spending and the effect of a quickly shifting dynamic of global currency valuations on revenue projections for businesses.
The uncertainty isn’t contained to the United States. Germany’s Puma said in its preliminary outlook for the year Tuesday it “anticipates ongoing geopolitical tension and economic challenges in 2025, especially trade disputes and currency volatility.”
Puma said it sees sales rising in the low to middle single digits for the year, on a currency adjusted basis. While there are no new EU tariffs being imposed by President Donald Trump yet, Puma reports sales in euros, which has been strengthening against the U.S. dollar. A weaker dollar means sales in dollars will contribute less to Puma’s top line. Puma, which trades on the German Xetra exchange, fell €1.61 to €28.41 Tuesday.
Overall, the Sportico Sports Stock Index, of which neither company is a component, ticked half a percentage point higher Tuesday. It is down about 13% from its three-year high touched in February.
