Dicks Sporting Goods Inc
Q3 2025 Earnings
GAAP EPS of $0.86 includes $138.5 million in merger and integration costs related to the Foot Locker acquisition, non-cash investment gains of $6.4 million from Foot Locker equity securities, and a higher effective tax rate of 28.0% partly driven by approximately $60 million of non-deductible merger costs. Non-GAAP EPS of $2.07 excludes these items but still includes the dilutive effect of 9.6 million shares issued for the acquisition.
Market Reaction
S&P 500 over the same 30 days: +1.90%.
Did DKS Beat Earnings? Q3 2025 Results
DICK'S Sporting Goods delivered a mixed quarter as its transformative Foot Locker acquisition reshaped the headline numbers in ways that left Wall Street wanting more. The company reported adjusted EPS of $2.07 for Q3 fiscal 2025, missing the $2.71 consensus estimate by 23.49%, while revenue of $4.17 billion, though up 36.3% year-over-year on the strength of a $930.91 million Foot Locker contribution, fell short of the $4.43 billion analysts had expected by 6.02%. The shortfall was heavily influenced by the Foot Locker business, which posted a $46.33 million operating loss and saw proforma comparable sales slide 4.7%, as management began the costly work of clearing unproductive inventory and closing underperforming stores, a process expected to generate $500 million to $750 million in future pre-tax charges. Beneath the acquisition noise, the core DICK'S Business showed genuine momentum, delivering 5.7% comparable sales growth, accelerating from 4.3% a year ago, prompting management to raise its full-year DICK'S Business EPS guidance to $14.25 to $14.55 and lift comparable sales growth expectations to 3.5% to 4.0%.
- DICK'S Business comp sales growth of 5.7% driven by increases in both average ticket and transactions
- Gross margin expansion for the DICK'S Business
- Opened 13 new House of Sport locations and 6 new DICK'S Field House locations during Q3
- Long-term strategies and best-in-class execution driving outstanding results
“The effectiveness of our long-term strategies and the best-in-class execution by our team are driving outstanding results for our DICK'S Business. In the third quarter, the DICK'S Business comps grew 5.7% driven by increases in both average ticket and transactions, and we were pleased to deliver gross margin expansion. Reflecting these strong results and our continued confidence, we are again raising our full-year 2025 outlook for the DICK'S Business. Finally, we welcome our Foot Locker team members to the DICK'S family, and we are excited about the journey underway to return the Foot Locker Business to its rightful place in our industry.”
Dick's Sporting Goods CEO, on the earnings call
Forward Guidance & Outlook
DICK'S Business full year 2025: EPS guidance raised to $14.25–$14.55 (from $13.90–$14.50), based on ~81 million diluted shares and ~24% effective tax rate, including expected impact from all tariffs currently in effect. Net sales expected at $13.95–$14.0 billion. Comparable sales growth raised to 3.5%–4.0% (from 2.0%–3.5%). Gross capital expenditures approximately $1.2 billion, net approximately $1.0 billion. For the Foot Locker Business in Q4 2025, gross margin is expected to decline 1,000–1,500 basis points versus prior year with pro-forma comp sales down mid- to high-single digits as the company clears unproductive inventory and closes underperforming stores. Excluding one-time costs, Q4 Foot Locker operating profit is expected to be slightly negative. Future pre-tax charges of $500–$750 million are expected from the Foot Locker asset review, inventory optimization, and merger and integration costs. Consolidated Q4 2025 effective tax rate approximately 29% with approximately 91 million weighted average diluted shares.
DKS YoY Financials
DKS Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.