Dick's Sporting Goods (NYSE: DKS) stock plummeted 5.98% in pre-market trading on Tuesday following the release of its third-quarter earnings report, which fell short of analyst expectations. The sporting goods retailer reported adjusted earnings per share of $2.07, significantly missing the consensus estimate of $2.71 and marking a 24.73% decrease from the same period last year.

Despite the earnings miss, the company's quarterly sales of $4.168 billion surpassed analyst projections of $3.546 billion, representing a 36.34% increase year-over-year. Comparable sales for the DICK'S Business grew by 5.7% in Q3. However, investors seem to be focusing on the bottom-line performance and future outlook.

Adding to concerns, Dick's Sporting Goods announced it expects future pre-tax charges ranging from $500 million to $750 million, likely related to inventory optimization and closure of underperforming stores. The company is also forecasting a slightly negative Q4 2025 operating profit for its recently acquired Foot Locker business, which may be contributing to investor unease.

Despite these challenges, Dick's has raised its full-year 2025 guidance. The company now expects comparable sales growth for the DICK'S Business to be between 3.5% and 4.0%, up from the previous range of 2.0% to 3.5%. Additionally, the company increased its 2025 EPS guidance to a range of $14.25 to $14.55. However, this positive outlook doesn't seem to be enough to offset the immediate concerns raised by the Q3 results and anticipated charges.