Dick’s Sporting Goods Surpasses Expectations with Strong Q1 Performance
Dick’s Sporting Goods delivers impressive first-quarter results, exceeding analyst predictions and reinforcing confidence with a steady full-year outlook amid its transformative acquisition of Foot Locker.
Highlights
- Dick’s Sporting Goods outperformed first-quarter forecasts and confirmed its annual guidance.
- Comparable store sales increased by 4.5%, surpassing the 3.65% average anticipated by analysts.
- The solid results follow the company’s strategic acquisition of Foot Locker, valued at $2.4 billion.
Dick’s Sporting Goods (DKS) reported robust first-quarter earnings, beating market expectations and signaling strong momentum after unveiling its acquisition of Foot Locker (FL), a move reshaping the sporting goods retail sector.
The retailer posted adjusted earnings per share (EPS) of $3.37 on net sales of $3.18 billion, representing a 5% year-over-year increase. These figures outpaced analyst estimates, which projected EPS of $3.28 and sales of $3.15 billion. The 4.5% growth in comparable store sales aligns with the company’s preliminary announcement in mid-May, coinciding with the Foot Locker deal disclosure.
Maintaining its full-year guidance, Dick’s Sporting Goods noted that the forecast does not yet factor in the financial impacts from the Foot Locker acquisition, anticipated to finalize in the latter half of 2025. Previously, the company projected 2025 sales between $13.6 billion and $13.9 billion, with comparable store sales growth ranging from 1% to 3%, and EPS estimates between $13.80 and $14.40.
CEO Lauren Hobart emphasized that reaffirming the annual outlook reflects the company's strong start and confidence in its strategic direction and operational capabilities, despite ongoing economic uncertainties.
Following the earnings release, shares, which had declined 24% earlier this year, experienced a 2% increase in early trading.
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