Robbins files investor notice after 30% slide

Robbins LLP said on September 7 that it was reminding investors about a securities class action against Dick’s Sporting Goods tied to the retailer’s acquisition and integration of Foot Locker. The law firm said the proposed class covers investors who bought Dick’s shares between September 8, 2025 and August 24, 2026. Robbins said the complaint alleges Dick’s and other defendants misled investors about growth and profitability tied to the Foot Locker deal. The allegations have been filed in court, but they have not been proven. ### Which investors does the notice cover? Robbins LLP said the case covers purchasers of Dick’s Sporting Goods common stock from September 8, 2025 through August 24, 2026. The firm’s case page says the suit was filed on behalf of investors who bought or otherwise acquired the stock during that period. September 8, 2025 matters because that was the date Dick’s said it had completed its acquisition of Foot Locker. (robbinsllp.com) Dick’s said then that the combined company would operate more than 3,200 stores plus e-commerce and digital businesses across 20 countries, while continuing to run Foot Locker’s brands as a standalone business unit. ### What are plaintiffs alleging about the Foot Locker deal? The Robbins notice says plaintiffs accuse Dick’s of presenting the Foot Locker acquisition as a strategic opportunity to drive growth and profitability while assuring investors that Foot Locker’s inventory and promotional problems had been addressed. Robbins says the complaint alleges those problems persisted and left Dick’s more exposed to excess inventory and discounting pressure in athletic footwear. (investors.dicks.com) May 15, 2025 is central to that theory because Dick’s and Foot Locker announced the merger agreement that day and said the transaction was expected to be accretive to Dick’s earnings per share in the first full fiscal year after closing, excluding one-time costs. Dick’s and Foot Locker valued the transaction at about $2.4 billion in equity value and about $2.5 billion in enterprise value. (robbinsllp.com) ### What happened when Dick’s reported results in August? Dick’s said on August 25, 2026 that it was revising its 2026 outlook because of a “challenging athletic footwear and apparel marketplace.” The company reported second-quarter earnings per diluted share of $3.50, down from $4.71 a year earlier, while pro forma comparable sales for the Foot Locker business fell 3.6%. Dick’s kept its comparable-sales outlook for its core Dick’s business at 2.5% to 4.0% growth, but lowered Foot Locker’s pro forma comparable-sales outlook to a range of negative 2.0% to 0.0% and cut operating-income expectations for both businesses. (investors.footlocker-inc.com) CNBC reported that Dick’s shares fell 30% on August 25, the stock’s worst day since 2023, after the earnings miss and outlook cut. CNBC also reported that Dick’s reduced its consolidated operating-income outlook to $1.45 billion to $1.55 billion from a prior range of $1.69 billion to $1.81 billion. ### What did Dick’s itself say about the pressure? Ed Stack, Dick’s executive chairman, said in the August 25 earnings release that conditions in parts of the athletic footwear and apparel market had become “increasingly promotional.” He said that environment had a larger effect on Foot Locker because of its exposure to legacy footwear silhouettes and its dependence on footwear launches and retro product. (investors.dicks.com) (cnbc.com) The same release said Dick’s business delivered 4.9% comparable-sales growth in the quarter, which the company said was driven by broad-based category growth and strong results tied to the 2026 FIFA World Cup. Dick’s contrasted that performance with weaker Foot Locker trends in the same quarter. ### Why does Robbins issue a notice like this? (investors.dicks.com) Robbins LLP said investors who suffered significant losses during the class period may be eligible to participate in the lawsuit. In securities class actions, firms commonly publish notices to identify potential class members and to solicit investors who may want to seek appointment as lead plaintiff, the investor who helps direct the case on behalf of the proposed class. That notice does not establish liability, and the claims remain allegations unless they are proved or resolved. (investors.dicks.com) August 29, 2025 was the election deadline for Foot Locker shareholders to choose cash or Dick’s stock in the merger, and Dick’s had said before closing that the transaction was expected to close on September 8, 2025, subject to remaining conditions. Those dates now form part of the timeline investors and lawyers are using to frame statements made before and after the acquisition closed. (sec.gov) (robbinsllp.com)