(Bloomberg) -- Dick’s Sporting Goods Inc. shares fell as the retailer prepares to acquire Foot Locker Inc., a sign that investors are nervous about management’s ability to turn around the struggling sneaker chain.

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The retailer raised its outlook, but not enough to satisfy Wall Street ahead of the transaction. Dick’s now sees comparable sales growth in a range of 2% to 3.5% for the full year and earnings per share at $13.90 to $14.50, above its previous projections. The forecast includes expected impact from all tariffs currently in effect.

“The conservative guidance paints a weak demand picture for the second-half, even though Dick’s customer appears strong with growth across categories and income levels,” said Lindsay Dutch, an analyst at Bloomberg Intelligence. “There may also be concern about Foot Locker and executing on a turnaround there.”

Dick’s shares dropped 5.3% at 11:51 a.m. in New York on Thursday. The stock has fallen 1.2% this year through Wednesday’s close, below the 10% gain of the S&P 500 Index.

The $2.4 billion Foot Locker deal is expected to close on Sept. 8. The agreement will unite two retailers with vastly different business models, with Dick’s adding about 2,400 mostly mall-based stores to its network of around 800 big-box sporting goods locations.

Dick’s Chief Executive Officer Lauren Hobart has yet to present a detailed strategic vision for Foot Locker, but Dick’s has said it expects to operate the company as a separate business unit.

Hobart said on a conference call with investors and analysts Thursday that management has become “increasingly optimistic” after spending time with Foot Locker executives and that Dick’s will invest in its sneaker stores and marketing.

Executives put off proving more details about their plans until the third quarter.

In May, Dick’s Chairman Ed Stack addressed investor concerns about the acquisition, trying to assure them that Foot Locker will reach shoppers that Dick’s doesn’t yet have access to, and that executives will improve operations at the ailing retailer.

Hobart has been investing in Dick’s store network, adding more experiential shops while improving e-commerce functions. The latest results show these efforts are paying off with shoppers. Comparable store sales rose 5% for the quarter ended Aug. 2, surpassing the average analyst estimate.

“We are not seeing any signs of slowdown in the consumer,” Hobart told analysts, though management has seen some “sporadic” price increases driven by tariffs.

(Updates with additional context, BI comment and share move from the first paragraph)

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