Dick's Sporting Goods lowered its annual operating income guidance to $1.45 billion to $1.55 billion, down from a prior range of $1.68 billion to $1.81 billion, citing increasingly tough conditions in the athletic footwear and apparel markets. The retailer now expects same-store sales from Foot Locker to be flat to down 2% for the year, down from earlier guidance of 1.5% to 3% growth. Management increased promotions during the second quarter to stay competitively-priced as the industry faced demand weakness, Executive Chair Ed Stack said.

The sector-wide challenges had a greater impact on Foot Locker because the brand is especially reliant on launching and selling footwear. Stack noted that not only were there fewer launches in the second quarter, but those launches performed below both industry and our expectations. Profit in the second quarter fell to $315 million, or $3.50 a share, compared with $381 million, or $4.71 a share, a year earlier.

Dick's shares slid 13% to $156.25 in premarket trading following the report. The report comes after other competitors in the athletic retail industry, including On Running, Columbia Sportswear and Under Armour, disappointed investors with lower-than-expected second-quarter financial reports.