- Dick's Sporting Goods Inc.
- 27 May 2026 14:38:07
Source: Sharecast
Net sales rose 62.7% year on year to $5.17bn in the 13 weeks ended 2 May, ahead of Wall Street expectations of about $5.07bn to $5.09bn cited by the Wall Street Journal and CNBC.
The increase was driven by the inclusion of Foot Locker, which contributed $1.79bn of revenue following its acquisition in September 2025.
Net income rose to $320m, or $3.54 per diluted share, from $264m, or $3.24 per share, a year earlier.
On an adjusted basis, earnings fell to $2.90 per share from $3.37, narrowly missing the $2.92 expected by analysts in a LSEG survey cited by CNBC, though slightly ahead of other consensus estimates cited by Investing.com and the Wall Street Journal.
Comparable sales rose 4.1% on a pro forma consolidated basis.
Dick’s standalone business delivered 6.0% comparable sales growth, supported by higher average ticket, more transactions and broad-based strength across footwear, apparel and hardlines.
Foot Locker returned to positive comparable sales growth of 0.6%, its first increase since the end of fiscal 2024, while Foot Locker US comps rose 6.4%.
“Sport is one of the hottest categories in the country today, and Dick’s is leading from the front,” said executive chairman Ed Stack.
“We're investing from a position of strength and playing offense for the long term, widening the gap between us and the rest of the industry.
“Our leadership showed up clearly in our Dick’s Business results this quarter, with 6% comp growth.
“With Foot Locker, our excitement and confidence continue to build as we execute our plan, and in Q1 we saw encouraging proof points, returning the Foot Locker Business to positive comps and profitability.”
The Foot Locker turnaround remain#ed costly.
Dick’s recorded $96.5m of acquisition-related charges in the quarter, including $53.8m of merger and acquisition costs such as severance and store closures, and $42.7m to clear sale inventory.
CNBC said those costs contributed to the earnings miss, even as revenue exceeded expectations.
Dick’s is restructuring Foot Locker by closing underperforming stores, reducing unproductive inventory and changing store formats.
Its Fast Break remodel programme, initially tested in 11 stores, had now expanded to about 100 stores globally and was producing double-digit comparable sales growth and merchandise margin improvement.
The company planned to scale the initiative to about 250 stores by the back-to-school season.
Stack said the Fast Break programme was “delivering exceptional results, with double-digit comps and merchandise margin improvement as we rapidly scale toward approximately 250 stores by back to school,” adding that the early progress supported a higher lower-end comp sales outlook for Foot Locker.
Chief executive Lauren Hobart said Dick’s had delivered 6% comp growth on top of increases of 4.5% last year and 5.3% in 2024, as it continued to gain market share.
“Sport is driving sustained energy and engagement across the consumer landscape, and our team turned that athlete demand into another very strong quarter of execution,” she said.
Dick’s raised the low end of its full-year comparable sales guidance for both businesses.
It said it now expected the Dick’s business to grow 2.5% to 4.0%, compared with 2.0% to 4.0% previously, and the Foot Locker business to grow 1.5% to 3.0%, up from 1.0% to 3.0%.
The company expected full-year consolidated net sales of $22.1bn to $22.4bn.
It lowered GAAP operating income guidance to $1.69bn to $1.81bn from $1.71bn to $1.83bn, and cut GAAP earnings per share guidance to $13.27 to $14.27 from $13.70 to $14.70.
However, it raised adjusted operating income guidance to $1.71bn to $1.83bn and maintained adjusted EPS guidance at $13.50 to $14.50.
By segment, Dick’s expects 2026 net sales of $14.5bn to $14.7bn for its core business and $7.6bn to $7.7bn for Foot Locker.
Foot Locker ended the quarter with 2,483 stores globally across Foot Locker, Kids Foot Locker, Champs Sports, WSS and atmos.
At 0933 EDT (1433 BST), shares in Dick’s Sporting Goods were down 3.05% in New York at $227.00.
Reporting by Josh White for Sharecast.com.