Dicks Sporting Goods warns about rocky 2025 sales in latest ominous sign for the economy

Dick's Sporting Goods is the latest major retailer to warn that it won’t sell as much as expected in 2025 as fears of a recession mount.

The chain — with 800 U.S. stores — is the latest to rattle investors with a gloomier-than-expected outlook for the year. 

It warned investors on Tuesday that profits will fall because shoppers are likely to spend millions less on shoes, jerseys, and camping gear. 

Dick’s is in good company: the sporting store is the latest major retailer to issue a cautious outlook as consumer confidence continues to wobble.

Kohl's, Walmart, Texas Roadhouse, and Campbell's all said they expect sales to slow down after bumper earnings in 2024. 

Kohl's was hit the hardest of the retailers. The brand expects sales to decline between 5 percent to 7 percent. 

The companies have pointed fingers at economic uncertainty, inflation, and the looming impact of tariffs. Now, Dick's has joined that chorus. 

'I do think it’s just a bit of an uncertain world out there right now,' Ed Stack, Dick's executive chairman, said in an interview on CNBC. 

 'If tariffs are put in place and prices rise the way that they might, what’s going to happen with the consumer?'

President Trump has seesawed on tariffs, twice threatening and postponing 25 percent taxes on goods imported from Mexico and Canada. 

The uncertainty around Trump's foreign policy has worried executives, with some stores — like Best Buy and Target — warning some popular items may get expensive. 

Dick's CEO Lauren Hobart, meanwhile, struck a more optimistic tone. In an earnings call, Hobart told analysts that Dick’s hasn’t seen signs of a weak consumer. 

Instead, she recast the tempered expectations as caution in an uneven economic climate. 

In the earning report, the company said it expects net sales of $13.6 billion to $13.9 billion. That would be good for 1 to 3 percent growth. 

Wall Street was expecting between 2 and 4 percent growth in 2025. 

The paltry prediction sent the company's stock into the red, losing 2.3 percent on March 12, the day after the earnings report. 

The stock loss is mildly ironic. Like the other major retailers, Dick's reported impressive sales increases in it latest call. 

Dick's outperformed last year's holiday quarter, even though the previous year's quarter was a week longer. 

Comparable sales surged 6.4 percent and brought in a revenue of $3.89 billion. Wall Street was betting the company would make $3.78 billion.

Cost concerns 

There are plenty of concerning signs in the U.S. economy. Retailers — and the White House — are starting to believe the bad signs are coming to roost. 

Consumer confidence in February hit its lowest level since 2021, unemployment ticked up, and a weaker-than-expected jobs report spooked investors, contributing to a stock market sell-off earlier this week. 

Customers are also feeling the heat at the store. 

Prices — especially at the grocery store — have remained high while Americans continue to take out a record amount of credit card debt. 

Meanwhile, politicians are warning that worse times may be ahead.  

In a recent interview, President Trump refused to rule out a recession. He has consistently warned Americans that there may be some tough economic times because of his policies. 

'There may be a little bit of an adjustment period - you have to bear with me,' he said during his record-breaking address to Congress.

'Tariffs are about Making America Great Again. There may be a little disturbance.'