Retailer Dick’s Sporting Goods (DKS) has reported strong financial results that surpassed Wall Street’s expectations.
The sporting goods chain announced earnings per share (EPS) of $3.45 U.S., which trounced the $2.87 U.S. consensus expectation of analysts.
Revenue of $6.23 billion U.S. was ahead of the $6.07 billion U.S. forecast on Wall Street. Sales were up 60% from a year earlier.
Management attributed the strong results to a better-than-expected year-end holiday quarter, as well as its acquisition of former rival Foot Locker.
Dick’s acquired Foot Locker last year in a $2.5 billion U.S. deal, and the combined company is now one of the largest distributors of products from athletic brands such as Nike (NKE).
In terms of guidance, Dick’s Sporting Goods said that it expects 2026 earnings of $13.50 U.S. to $14.50 U.S. per share. That was weaker than the $14.67 U.S. anticipated by analysts.
The guidance miss is due to the costs of clearing through Foot Locker’s inventory and closing unproductive stores. The retailer also foresees some softness in the U.S. economy.
Integrating Foot Locker is expected to cost Dick’s $500 million U.S. to $750 million U.S.
Dick’s Sporting Goods said it expects to see an improvement in Foot Locker’s sales and profitability starting with the back-to-school shopping season in August and September.
For all of 2026, Dick’s expects Foot Locker’s comparable sales to grow 1% to 3%.
DKS stock is flat (up 0.18%) over the last 12 months and trading at $195.53 U.S. per share.
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