CMR is the leading provider of funding and management support for small to medium-sized businesses and entrepreneurs 

Dick's Sporting Goods shares crashed by the most on record Tuesday after the sporting goods retailer slashed its annual sales and adjusted operating-income forecasts, as softness at recently acquired Foot Locker deepened concerns about the $2.4 billion takeover.

"We're going to go through some pain," Chairman Ed Stack told analysts on an earnings call.

Dick's now expects fiscal-year net sales of $21.9 billion to $22.2 billion, below its previous forecast of $22.1 billion to $22.4 billion, as deteriorating sales at Foot Locker offset continued strength at its core stores.

The divergence was alarming: Foot Locker's pro forma comparable sales fell 3.6% in the second quarter, while comparable sales at Dick's stores rose nearly 5%.

Notably, Foot Locker's core shoppers are young men aged 12 to 25 who buy premium sneakers and athletic apparel. These shoppers tend to be more value-conscious and somewhat lower-income. So, with national gasoline prices remaining well above $4 per gallon, cutting back on sneakers could be one of their first moves.

"As the quarter progressed, conditions across portions of the athletic footwear and apparel marketplace became increasingly promotional, and we took action to remain competitively priced to protect and grow our leadership position. This environment had a more significant impact on the Foot Locker Business given its greater exposure to legacy footwear silhouettes and greater dependence on footwear launch and retro product. Not only were there fewer launches in the second quarter, but those launches performed below both industry and our expectations. As a result, we are taking a more cautious view of the balance of the year," Stack said.

Dick's shares crashed nearly 28% during the cash session, marking the biggest intraday decline on record, according to Bloomberg data going back to 2002.

The stock was down 34% for the year as of around lunchtime Tuesday.

Here's Barclays analyst Adrienne Yih's initial take on the dismal earnings report:

Despite challenging footwear backdrop, core DICK'S proves the strength of the model; Foot Locker exposes the weakness of the category. Despite an increasingly promotional footwear and apparel environment, the DICK'S business delivered +4.9% comps, with broad-based growth, higher transactions, and market-share gains. Foot Locker's -3.6% comp and sales-outlook reduction underscore the pressures facing footwear-centric retailers tied to legacy silhouettes, fewer launches, and retro products. With FY26 comparable-sales guidance reiterated for the DICK'S banner, growth is likely to moderate from current levels, while Foot Locker is expected to experience a weaker fall season. FY26 adjusted operating income was lowered due to expectations for an increasingly challenging footwear industry, as evidenced by footwear brands in recent weeks. We believe DKS's long-term strength as the dominant player remains intact, but near-term industry trends will affect the Foot Locker turnaround. In premarket trading on Aug. 25, 2026, DKS shares fell 17%, compared with a flat S&P 500.

2Q26 miss; FY26 guidance lowered. Consolidated DKS adjusted EPS of $3.53 missed the consensus estimate of $3.76, driven by lower sales and higher operating expenses. Total revenue of $5.59 billion came in below the consensus estimate of $5.65 billion. Comparable sales grew 4.9% at the DICK'S business, while the Foot Locker business turned negative at -3.6%. Overall, pro forma comparable sales increased 2.1%. Gross margin of 34.1% exceeded the consensus estimate of 33.9%. The operating-expense rate of 25.9% of sales missed the consensus estimate of 25.5%. FY26 guidance for the consolidated entity was updated, with management now forecasting adjusted EPS of $11.00 to $12.00, down from $13.50 to $14.50 previously and below the consensus estimate of $14.34; net sales of $21.9 billion to $22.2 billion, down from $22.1 billion to $22.4 billion previously and below the consensus estimate of $22.4 billion; comparable sales at the core DICK'S business of +2.5% to +4.0%, unchanged from the previous forecast; comparable sales at the Foot Locker business of -2.0% to 0.0%, down from +1.5% to +3.0% previously; and adjusted EBIT of $1.46 billion to $1.56 billion, down from $1.71 billion to $1.83 billion previously and below the consensus estimate of $1.80 billion.

Core DKS inventory in strong position. Based on our proprietary inventory analysis, DKS has posted four consecutive quarters of positive sales-to-inventory growth. In FY2Q26, the Inventory Management Spread ("IM Spread") was 88 basis points, worsening from 377 basis points in the previous quarter. DKS's Gross Margin Return on Inventory ("GMROI") has improved for four consecutive quarters, while its Operating Margin Return on Inventory ("OMROI") has worsened for two consecutive quarters. (Until the anniversary of the Foot Locker acquisition, our inventory metrics include only the core DICK'S business and exclude the Foot Locker business.)

What other analysts are saying, courtesy of Bloomberg:

Quo Vadis Capital

• "We are not tempted by DKS shares at an 18% premarket decline," writes John Zolidis, president and founder of Quo Vadis.
• He cites two problems at the retailer.
• First, the outlook for Dick's core business was revised downward based on an increasingly promotional environment in the channel and the company's decision "to participate" in that activity.
• "This is disappointing in the context of management's previous commentary about the strength of the business and implied insulation from pockets of weakness in customer cohorts and subcategories seen elsewhere," Zolidis says.
• The second and bigger issue is the lack of improvement at Foot Locker.
• "DKS did not understand what it was buying with Foot Locker," in his view, and the risk is now "becoming very real" that DKS will need to commit additional capital to Foot Locker.
• "The best path may be to admit the mistake now and write off the entire chain," Zolidis adds.

Citi (Buy)

• Analyst Paul Lejuez expects the stock to come under "significant pressure" following the lowered annual guidance and the "more challenging backdrop" cited by management.
• "We suspect that weak Foot Locker 2Q comps were expected by many, but the lowered FY Dick's banner EBIT margin and Foot Locker sales/EBIT reduction (which calls into question the timing of any potential fix) are the big negative surprises," he writes.

Bloomberg Intelligence

• The earnings shortfall and reduced annual outlook for Foot Locker's same-store sales "deepens skepticism about the merits" of the acquisition, analyst Lindsay Dutch writes.
• "Dick's promised a turnaround of Foot Locker, yet the 3.6% same-store sales decline in 2Q shows it has failed to deliver as tighter discretionary budgets pressure the lifestyle footwear category," she says.
• The legacy business "remains solid, with steady sports-focused demand."

UBS (Buy)

• The 2Q results and annual guidance update show that the company has been "subjected to the challenging conditions in the athletic footwear and apparel market as of late," analyst Michael Lasser writes.
• The core business continued to gain market share, but both segments, Dick's and Foot Locker, sacrificed some margin to drive business, he says.
• Key question: If challenging conditions in the athletic footwear and apparel market persist for a prolonged period, how will the earnings power of the combined business be affected?
• Another question is whether Foot Locker's recent performance will prompt management to change its strategy for the segment.

Jefferies (Hold)

• "The core Dick's business held up well this quarter, with Foot Locker soft," analyst Jonathan Matuszewski writes.
• "More important, as foreshadowed by other retailers and brands in the sporting goods retail landscape, the category has softened and management now expects more promotionality and less robust growth in 2H," he adds.

Days after the US hit Canada with a 50% tariff on $20 billion worth of Canadian goods amid a collapse in trade talks - and a Monday threat to include cars, trucks, auto parts and steel, Canada hit back on Tuesday - announcing retaliatory tariffs as high as 50% on $20 billion worth of American products. 

Canada will begin collecting tariffs of 50, 25, and 15 percent on roughly 700 products beginning on Sept. 8. Most notably is the doubling of tariffs on American steel and aluminum to 50%. In addition to tit-for-tat tariffs on things like tools, clothing and forestry products, Canada is also targeting consumer products like home appliances. 

The retaliation was expected following warnings by Prime Minister Mark Carney - a former central banker, who said that Canada would match US tariffs "dollar for dollar," though he admitted that the move "will raise costs and reduce choice for Canadians," NYT reports.

One of the major sources of tension in the trade negotiations was the United States’ 25 percent tariff on automobiles, a major export for Canada, introduced about 18 months ago. On Tuesday Canada said it would keep its retaliatory tariff on American-made cars at 25 percent and maintain a system that allows companies that build cars in Canada to continue to import them from the U.S. tariff-free, within limits. Canadians buy more cars from the United States that they ship there. -NYT

Canada imports around $272 billion in US goods annually - while Carney's government says it will spend far more on keeping Canadian exporters solvent than it will bring in from the tariff, so ouch. 

Or as the NYT frames it; "because Canada’s economy is about one-twelfth the size of the U.S. economy, its retaliatory tariffs will have the effect of a pea shooter in a gun battle." 

The Trump administration plans to charge employers a fee of $103,265 for H-1B skilled foreign workers, according to a proposed regulation posted on Monday. Revenue from the fee would be used to offset the costs of running the federal immigration system - including courts and US Immigration and Customs Enforcement (ICE). 

A similar $100,000 fee was shot down in June by an Obama-appointed federal judge in Massachusetts, after Trump attempted to implement it via presidential proclamation and 20 blue states went apeshit. The administration's argument is that the H-1B program has been used to take jobs from Americans, and the additional fee would cause employers to consider the cost of just hiring Americans.

Citing a working paper in the National Bureau of Economic Research, the new proposed regulation argues that the new fee would make employers "less likely to hire an H-1B worker over a qualified and highly-skilled American." The paper found that H1-B workers make on average around 15% less than American counterparts. 

The program, passed by Congress in 1991, lets employers hire 65,000 skilled foreign workers per year - with an additional 20,000 visas available for workers who hold advanced degrees from US universities. 

The new proposed regulation is set to publish in the Federal Register today - and would exempt some groups such as most US colleges, universities and nonprofit hospitals associated with academic institutions. Unlike last year's proposal, this one would apply to many people already living in the US - not just new applications submitted from abroad.

The new rule would also restrict a major pathway used by tech companies. In recent years, Amazon has received the most H-1B visas - with over 9,300 approved petitions in FY2026 through June 30, the Washington Post notes - citing US Citizenship and Immigration Services data. Other companies using the H-1B program are India-based IT and outsourcing firms such as Infosys and Tata Consultancy Services, followed by American companies Apple and Microsoft.

By Michael Every of Rabobank

US Treasury Secretary Bessent took out a tactical nuke in saying he could use $1trn from the Treasury General Account to fund Special Military Operation Twist bond buybacks vs. the $2bn per round increase we saw last week. That looks a lot like the ‘Whatever It Takes’ mentioned yesterday: his former mentor Stan Druckenmiller is not a fan, apparently.

He also launched ‘Operation Economic Outcast’ to isolate and squeeze Iran further on top of US sanctions and a blockade against its oil. Those helping Iran will face secondary sanctions escalating to their removal from the US dollar system, as nuclear a weapon as financial warfare can wield. However, when asked why he didn’t impose them immediately, Bessent replied, “Why would I want to blow up the global financial system?” He will first try to persuade key parties to walk away from Iran: yet some have real nuclear weapons and others control rare earths and global supply chains. The stakes here are therefore sky high, unless this is a bluff.

Tehran said it would retaliate to sanctions by land, sea, air, or cyber-attacks; trolled it might kill Barron Trump, as Israeli PM Netanyahu claimed it had threatened one his sons too; continued to threaten ships transiting Hormuz; the Houthis struck a Saudi tanker in the Red Sea, which neither Egypt nor Turkey responded to; the Saudis held talks about a state-backed war insurance plan for shipping like the US one that didn’t work; China sent PLA jets to drill alongside Egypt’s; China reported it has boosted coal's economic value by 700% after turning it to liquids, underlining it’s much more energy secure than before; a US defence start-up is making thousands of drone interceptors in the UAE for $5,000, cheaper than Iranian attack drones; and Greece warned Turkey against violating its “sovereign rights” and vowed to respond from a “position of strength.”

In Ukraine, EU leaders, and no US representative, offered help to Kyiv as it faces another €23n defense funding hole, albeit managing to hit Russia's Afipsky oil refinery as well as another e-commerce giant. Russia threatened to hit UK factories making defence parts for Ukraine.

Trump may impose a 7.5% ‘overcapacity’ tariff on China ahead of the Xi state visit, clearly a negotiating card. He will also raise the tariff on Canadian autos and trucks from 25% to 50% from 1 January in response to PM Carney’s ‘elbows up’. Ottawa now faces the choice of matching those tariffs, retreating, or doing what those who oppose tariffs as self-harm never do: slash their levies and enjoy cheap imports replacing local production. Alberta Premier Smith, where a vote on a secession referendum looms in October, had to stress it’s “not viable” to cut off energy exports to the US; and with warnings US-Canada trade war could affect their defence relationship, Carney said he will begin negotiations with the EU about deepening trade and defence relations.

That makes political but not geostrategic sense. Canada isn’t in Europe so can’t join the EU, but if it were to enter a customs union it would surrender sovereignty: and would Europe buy Canadian cars, trucks, planes, agri products, or its fossil fuels given plans to decarbonise? They’d like its critical minerals, but can buy them now. Canada would be sending its goods to a bloc far away over seas neither it nor the EU have the navies to protect, as both are defense under-spenders relative to their huge needs. Both rely on the US for defense and, increasingly, for AI. Yet both assume a benign US stance if they push ahead without it, strategically, even while saying they are doing so because they don’t see the US as benign. That logical inconsistency implies either the strategy is hollow, or will need filling with a greater shift to economic statecraft replete with risks.

Equally, some may picture a ‘blue’ bloc from Canada to Armenia as Yerevan said it will hold a referendum on EU membership soon, shifting the bloc further east and Russia-EU tensions higher. UK PM Burnham also made more mandate-free noises about rejoining in the future. 

Yet Politico underlines the German AfD -- cosy with the Kremlin and wishing to leave the euro and Schengen -- will win the 6 September state election in Saxony-Anhalt. The plan to deal with that ranges from ignoring to defunding Saxony to banning the AfD: are those a basis for long-term political stability? In early 2027, France then has a presidential election that could pit nationalist Le Pen vs. leftist Melenchon: both want to tear norms up, the latter to tear French debt up too. What’s the correct interest rate or FTA for these kinds of structural problems?

The new Rhine Group think tank led by Draghi states that for the EU, “The stakes are existential.” It underlines, “Europe is in a harder place than when the future of European competitiveness report was released… If stagnation continues, the continent will progressively lose the ability to fund the core obligations of a modern state: defence, public healthcare, pensions, education, climate investments, and safety nets for those who lose their jobs… Decline is not inevitable, but it is the direction we are heading unless we take urgent action.” The warning that “slow agony” lay ahead without radical, rapid EU change failed to produce anything much: will this report do the trick?

Meanwhile, showing how the world now works, the US(!) is opening up Venezuela’s telecom sector while excluding Chinese firms, as Fortune magazine floats the idea of the country adopting the US dollar.

In the US, the Supreme Court issued a ruling with potentially huge consequences. It has allowed, for now, a Trump executive order to proceed which strictly monitors mail-in voting and requires tighter control of who is listed as a voter and the envelopes used to do, at a time when the president has quietly asserted control over the postal service, according to the New York Times. Those making market, or geostrategic, gambles on midterm outcomes assuming that the magical mystery tour of mail-in votes will be cast in the same way they have may be in for a surprise – or so Republicans seem to feel. 

The Trump admin also proposed a staggering $103,000 fee for H-1B visas, effectively shutting off that avenue for all but the highest-earning immigrants, and is preparing to revoke the visas of up to 200K foreigners in largest mass action ever. That looks like a midterm-focused policy.

In short, there is a lot of economic outcasting going on right now. It’s just not clear who is going to be in and who is going to be out, and with whom, when the dust settles – and we can expect serious dustups in that process.

None of that mattered to the RBA’s majorly monomaniacal meeting minutes, which showed that it left rates on hold on the view that inflation was easing and so was the tight labour market. All of the above backdrop was cast out of that forecast, as is the case with other central banks. To be fair, how does one include it? To be just as fair, how can one exclude it? Maybe Warsh will have something to say on not saying anything about that on Friday.  

The Conference Board's measure of Americans' Consumer Confidence fell from a revised-lower 90.2 to 89.4 in August (below the 90.2 exp) - the lowest since January.

Interestingly, under the hood, we saw Expectations plunge to January lows while Present Situation spiked from 5 year lows...

“Consumer confidence moderated slightly in August for a second consecutive month,” said Dana M Peterson, Chief Economist, The Conference Board.

“The Expectations Index slipped further into negative territory, which was offset by a moderate rise in the Present Situation Index after declining in the past three months. Consumer appraisals of current business conditions were mildly positive. Perceptions of the current labor market improved, reversing three months of moderate decline. Looking ahead, consumers were more pessimistic about business conditions and the labor market over the next six months. Expectations for household incomes moderated but remained optimistic overall.”

On a six-month moving average basis, confidence across all age groups trended down slightly, remaining highest among consumers under 35.

By income, confidence was mixed, but generally higher-income groups were more optimistic.

By generation, confidence for Gen Z remained the highest, followed closely by Millennials on a six-month moving average basis. The three oldest generations—Generation X, Baby Boomer, and Silent Generation—trailed in confidence by a wider margin.

By political affiliation, confidence among Independents and Republicans softened while Democrats were somewhat more positive in August.

Consumers’ write-in responses on factors affecting the economy were slightly more pessimistic in August.

References to prices in general—and oil and gas specifically—remain elevated. Comments about war/conflict, food/groceries, trade, and jobs rose in August. Consumers’ average and median 12-month inflation expectations were slightly more elevated in August. Most consumers—61.3%—still anticipated higher interest rates over the next 12 months, down moderately from 62% in July. Meanwhile, consumers still expected higher stock prices a year from now.

On a six-month moving average basis, auto purchasing expectations remained strong. Homebuying expectations declined slightly for the month but maintained an upward trend after slumping to decade-lows in early 2024. 

Perhaps reflective of the weak confidence (especially 'Expectations'), new home sales plunged 10.5% MoM in August (after an upwardly revised +7.6% bounce in July). That dragged new home sales down 6.3% YoY...

Total new home sales SAAR dropped back to 607k - basically flat since 2016...

Sales have fallen in three of the last four months, adding to evidence of a housing market burdened by elevated finance costs and prices.

However, on the potential bright side for homebuyers and affordability, median new home prices fell to a five-year low...

Interestingly, while median new home price just dropped to a 5 year low, the average new home price hasn't budged as ultra high end homes keep lifting the average...

While builders have had some success bolstering demand with free upgrades, mortgage rate buydowns and price reductions, the entry-level market remains affordability-constrained, and likely stays there until consumer confidence rebounds (which is highly dependent on the price of gas, among other things).

President Donald Trump drew fresh attention to a long-running controversy on Sunday when he reposted a Just the News article on Truth Social headlined "ICE refuses to disclose records on Ilhan Omar fraud probe, cites ongoing 'enforcement proceedings.'" His decision to amplify the report, without comment, renewed scrutiny of allegations that have dogged Rep. Ilhan Omar (D-Minn.) for years - though ICE's response stops short of confirming she is personally the target of any active proceeding.

The Trump administration has said for months it possesses evidence that Omar committed immigration fraud. What has remained unclear is whether that evidence translates into an indictment, a denaturalization proceeding, or nothing at all.

Just the News filed a Freedom of Information Act request in January 2026 for records related to Omar's marriage to Ahmed Nur Said Elmi, a man whose identity, evidence suggests, is that of her brother. ICE's response cited a specific legal exemption rather than denying or providing a timeline. "ICE has determined that the information you requested is being withheld in full pursuant to Title 5 U.S.C. § 552(b)(7)(A)," the agency wrote. "Disclosure of any responsive records at this time could reasonably be expected to interfere with enforcement proceedings."

Department of Justice guidance requires a two-step showing before an agency can invoke it. "First, there must be a 'reasonable likelihood' of a pending or contemplated law enforcement proceeding," the guidance states. "Second, release of the information must be reasonably expected to cause some articulable harm to that proceeding." ICE cleared both hurdles by its own estimation; whether that estimation holds up matters more now that the president has amplified it himself.

While no court has established as fact that Ahmed Nur Said Elmi is Omar's brother, the most detailed public claim comes from the government of Somaliland. This territory, which split from Somalia in 1991, claimed back in March that Omar's original last name was Elmi before it was changed, and that this evidence "was available, but the Obama Justice Department refused to investigate."

The allegations that Omar married her brother first surfaced during Omar's 2016 campaign for a seat in the Minnesota House, alongside a separate claim that she remained legally married to her first husband when she married Elmi.

Omar was born in Somalia and lived in a refugee camp in Kenya before coming to the United States in 1995. She applied for a marriage license with Ahmed Hirsi in 2002 but never married him civilly, only through a Muslim ceremony. The two separated in 2008. Omar married Elmi the following year, then split from him in 2011 through another Muslim divorce. She resumed her relationship with Hirsi in 2012, a year before she won her seat in the Minnesota House. Omar did not file for a formal divorce from Elmi until 2017, and she married Hirsi civilly in 2018, sixteen years after they first applied for that license.

Omar's campaign denied both allegations against her. "Allegations that she married her brother and is legally married to two people are categorically ridiculous and false," said then-campaign spokesman Ben Goldfarb.

Following its unexpected rebound in May (from three months of declines), US home prices in America's 20 largest cities were expected to rise again (+0.1% MOM) in June (according to the latest data from S&P Cotality Case-Shiller).

Instead prices actually accelerated more, up a sizable 0.24% MoM, pulling home prices up 2.1% YoY - the fastest acceleration in a year...

“Seasonal factors continue to support monthly price growth," said Rebecca Kaufman, Associate Director of Commodities at S&P Dow Jones Indices.

"Because June typically falls near the peak of the homebuying season, price appreciation often moderates and market activity cools in the months ahead."

 

For the fourth consecutive month, Chicago led all metros with a 6.9% annual increase in June, followed by New York (4.8%) and Cleveland (4.1%).

Meanwhile, Seattle recorded the largest annual decline at 2.0%, followed by Las Vegas (-1.9%) and Denver (-1.2%).

"This geographic divide reflects a years-long trend, with housing markets in the Northeast and Midwest regaining strength while many Western and Sunbelt markets soften," says Kaufman.

Prices remain oddly coupled with Fed Reserves, implying stability, rather than acceleration, from here...

“The housing market remains under pressure, with 30-year mortgage rates holding near 6.5% in June,” Kaufman concluded.

“As financing costs are kept high for prospective buyers, current homeowners remain reluctant to give up the low mortgage rates secured in prior years.”