DICK'S Sporting Goods Reports Second Quarter Results; Raises 2025 Outlook (A)
– Delivers Record Second Quarter Sales and 5.0% Comparable Sales Growth,
– Raises Full Year 2025 Guidance for Comparable Sales Growth to a Range of 2.0% to 3.5%,
Delivered earnings per diluted share of $4.71 and non-GAAP earnings per diluted share of $4.38, compared to GAAP and non-GAAP earnings per diluted share of $4.37 during the prior year quarter
Opened one new House of Sport location and four new DICK'S Field House locations during the second quarter; Opened three new House of Sport locations and eight new DICK'S Field House locations year-to-date
Raises full year 2025 guidance for comparable sales growth to a range of 2.0% to 3.5%, up from 1.0% to 3.0% previously (A)
Raises full year 2025 earnings per diluted share guidance to a range of $13.90 to 14.50, up from $13.80 to 14.40 previously (A)
"With Q2 comps at 5%, our momentum continues to build, a clear reflection of the strength of our long-term strategies and investments. We remain very enthusiastic about the strategic benefits from the Foot Locker acquisition. As previously shared, Foot Locker shareholders approved the transaction. We have also received all required regulatory approvals, and we anticipate that the deal will close on September 8th."
Ed Stack, Executive Chairman
"We are very pleased with our strong Q2 results. Our performance shows how well our long-term strategies are working, the strength and resilience of our operating model and the impact of our team's consistent execution. Our Q2 comps increased 5.0%, with growth in average ticket and transactions, and we drove second quarter gross margin expansion. We are raising our full year 2025 outlook to reflect our strong Q2 results and the ongoing confidence we have in our business, grounded in our team's execution of our strategic pillars."
Lauren Hobart, President and Chief Executive Officer
PITTSBURGH, Aug. 28, 2025 /PRNewswire/ -- DICK'S Sporting Goods, Inc. (NYSE:DKS), a leading U.S. based full-line omni-channel sporting goods retailer, today reported sales and earnings results for the second quarter ended August 2, 2025.
(A)
Outlook does not include acquisition-related costs, investment gains or results from the planned acquisition of Foot Locker. Please see the section of this document titled "Full Year 2025 Outlook" for more information.
Second Quarter Operating Results
(dollars in millions, except per share data)
13 Weeks Ended
Change (7)
August 2, 2025
August 3, 2024
Net sales
$
3,647
$
3,474
$
173
5.0 %
Comparable sales (1)
5.0 %
4.5 %
Income before income taxes (% of net sales) (2)
14.0 %
13.9 %
9 bps
Non-GAAP income before income taxes (% of net sales) (2) (3)
13.0 %
13.9 %
(93) bps
Net income
$
381
$
362
$
19
5 %
Non-GAAP net income (3)
$
355
$
362
$
(7)
(2) %
Earnings per diluted share
$
4.71
$
4.37
$
0.34
8 %
Non-GAAP earnings per diluted share (3)
$
4.38
$
4.37
$
0.01
— %
Year-to-Date Operating Results
(dollars in millions, except per share data)
26 Weeks Ended
Change (7)
August 2, 2025
August 3, 2024
Net sales
$
6,821
$
6,492
$
329
5.1 %
Comparable sales (1)
4.7 %
4.9 %
Income before income taxes (% of net sales) (2)
12.6 %
12.7 %
(13) bps
Non-GAAP income before income taxes (% of net sales) (2) (3)
12.2 %
12.7 %
(47) bps
Effective tax rate
24.7 %
22.7 %
201 bps
Net income
$
646
$
638
$
8
1 %
Non-GAAP net income (3)
$
629
$
638
$
(8)
(1) %
Earnings per diluted share
$
7.95
$
7.67
$
0.28
4 %
Non-GAAP earnings per diluted share (3)
$
7.75
$
7.67
$
0.08
1 %
Balance Sheet
(in millions)
As of
August 2, 2025
As of
August 3, 2024
$
Change (7)
%
Change (7)
Cash and cash equivalents
$
1,231
$
1,692
$
(461)
(27) %
Inventories, net
$
3,404
$
3,178
$
226
7 %
Total debt (4)
$
1,485
$
1,484
$
1
— %
Capital Allocation
(in millions)
26 Weeks Ended
$
Change (7)
%
Change (7)
August 2, 2025
August 3, 2024
Share repurchases (5)
$
299
$
164
$
135
83 %
Dividends paid (6)
$
196
$
183
$
13
7 %
Gross capital expenditures
$
526
$
372
$
154
41 %
Net capital expenditures (3)
$
455
$
326
$
130
40 %
Notes
(1)
Beginning in fiscal 2025, we revised our method for calculating comparable sales to include Warehouse Sale stores beginning in the stores' 14th full month of operations, similar to our other store locations. Prior year information has been revised to reflect this change for comparability purposes. See additional details as furnished in Exhibit 99.2 of the Company's Current Report on Form 8-K, filed with the SEC on March 11, 2025.
(2)
Also referred to by management as earnings before income taxes ("EBT").
(3)
For additional information, see GAAP to non-GAAP reconciliations included in tables later in the release under the heading "GAAP to Non-GAAP Reconciliations." In the fiscal 2024 period, there were no non-GAAP adjustments to reported EBT margin, net income or earnings per diluted share.
(4)
The Company had no outstanding borrowings under its revolving credit facility in 2025 and 2024.
(5)
During the 26 weeks ended August 2, 2025, the Company repurchased 1.4 million shares of its common stock under its previously announced share repurchase program at an average price of $218.65 per share, for a total cost of $298.7 million. The Company has $212.9 million remaining under this authorization as of August 2, 2025. The Company also paid $5 million during fiscal 2025 for shares repurchased during fiscal 2024.
(6)
The Company declared and paid quarterly dividends of $1.2125 per share in fiscal 2025 and $1.10 per share in fiscal 2024.
(7)
Column may not recalculate due to rounding.
Quarterly Dividend
On August 27, 2025, the Company's Board of Directors authorized and declared a quarterly dividend in the amount of $1.2125 per share on the Company's common stock and Class B common stock. The dividend is payable in cash on September 26, 2025 to stockholders of record at the close of business on September 12, 2025.
Agreement to Acquire Foot Locker
On May 15, 2025, the Company announced that it entered into a definitive merger agreement to acquire Foot Locker, Inc., a leading footwear and apparel retailer. Under the terms of the merger agreement, Foot Locker shareholders will elect to receive either (i) $24.00 in cash or (ii) 0.1168 shares of DICK'S Sporting Goods common stock for each share of Foot Locker common stock, for a total equity value of approximately $2.4 billion and an enterprise value of approximately $2.5 billion. As previously announced, Foot Locker shareholders have approved the merger and all regulatory approvals have been received. The Company anticipates the acquisition to close on September 8, 2025, subject to the satisfaction or waiver of remaining customary closing conditions. To the degree Foot Locker shareholders do not elect to receive their consideration entirely in shares of the Company's common stock, the Company intends to finance the acquisition through a combination of cash-on-hand, revolving borrowings and other new debt.
Full Year 2025 Outlook (1)
The Company's Full Year Outlook for 2025 presented below does not include acquisition-related costs, investment gains or results from the planned acquisition of Foot Locker:
Metric
2025 Outlook
Earnings per diluted share
● $13.90 to 14.50
○ Based on approximately 81 million diluted shares outstanding
○ Based on an effective tax rate of approximately 25%
○ Includes the expected impact from all tariffs currently in effect
Net sales
● $13.75 billion to 13.95 billion
Comparable sales
● Positive 2.0% to positive 3.5%
Capital expenditures
● Approximately $1.2 billion on a gross basis
● Approximately $1.0 billion on a net basis
(1) Please see the section of this document titled "Non-GAAP Financial Measures" for more information.
Store Count and Square Footage
The following table summarizes store activity for fiscal 2025:
Beginning
Stores
New
Stores
Closed
Stores
Relocated /
Converted (5)
Ending
Stores
(in millions)
Square Footage (6) (7)
Beginning
Ending
DICK'S Sporting Goods (1)
DICK'S (2)
677
—
(3)
(9)
665
36.3
35.6
DICK'S Field House (2)
27
2
—
6
35
1.6
2.0
DICK'S House of Sport
19
—
—
3
22
2.2
2.6
Total DICK'S Sporting Goods
723
2
(3)
—
722
40.1
40.2
Other Specialty Concepts (1)
Golf Galaxy (3)
109
3
—
—
112
2.4
2.5
Going Going Gone! (4)
50
6
(4)
—
52
2.2
2.4
Other
3
—
—
—
3
0.1
0.1
Total Other Specialty Concepts
162
9
(4)
—
167
4.8
5.0
Total (4)
885
11
(7)
—
889
44.8
45.1
(1)
In some markets, we operate DICK'S Sporting Goods stores adjacent to our specialty concept stores on the same property with a pass-through for our athletes. We refer to this format as a "combo store" and include combo store openings within both the DICK'S Sporting Goods and specialty concept store reconciliations, as applicable. As of August 2, 2025, the Company operated 15 combo stores.
(2)
Beginning store count and square footage were updated to reflect one DICK'S Field House location that opened in fiscal 2024, which was previously reflected as a DICK'S store.
(3)
As of August 2, 2025, includes 30 Golf Galaxy Performance Centers, with six new openings during fiscal 2025, three of which were conversions of prior Golf Galaxy store locations.
(4)
Beginning store count and square footage were updated to reflect Warehouse Sale locations as described in the Company's Current Report on Form 8-K, filed with the SEC on March 11, 2025. As of February 2, 2025, beginning amounts now include 29 Warehouse Sale locations and 1.3 million of related square footage.
(5)
Reflects stores converted between concept or prototype through store relocations or remodels as part of the Company's strategy to reposition its store portfolio. Including stores that converted between concepts, the Company relocated or remodeled six stores during the current year period.
(6)
Includes square footage as of August 2, 2025 related to five Public Lands store closures as we plan to convert three into DICK'S House of Sport and two into DICK'S Field House stores during fiscal 2025 and early 2026.
(7)
Columns may not recalculate due to rounding.
Non-GAAP Financial Measures
In addition to reporting the Company's financial results for the second quarter in accordance with generally accepted accounting principles ("GAAP"), the Company reports certain financial results for the quarter that differ from what is reported under GAAP. These non-GAAP financial measures include non-GAAP gross margin, non-GAAP operating margin (also referred to as non-GAAP EBIT margin), non-GAAP EBT margin, non-GAAP net income, non-GAAP earnings per diluted share and net capital expenditures, which management believes provides investors with useful supplemental information to evaluate the Company's ongoing operations and to compare with past and future periods. Furthermore, management believes that adjustments related to its deferred compensation plans enables investors to better understand its selling, general and administrative expense trends by excluding non-cash changes in our deferred compensation plan investment fair values from market fluctuations that are offset within other income. Management also uses these non-GAAP measures internally for forecasting, budgeting, and measuring its operating performance. These measures should be viewed as supplementing, and not as an alternative or substitute for, the Company's financial results prepared in accordance with GAAP. The methods used by the Company to calculate its non-GAAP financial measures may differ significantly from methods used by other companies to compute similar measures. As a result, any non-GAAP financial measures presented herein may not be comparable to similar measures provided by other companies. A reconciliation of the Company's non-GAAP measures to the most directly comparable GAAP financial measures are provided below and on the Company's website at investors.DICKS.com.
Information reconciling certain forward-looking GAAP measures to non-GAAP measures related to full year 2025 outlook and guidance, including earnings per diluted share, net sales, comparable sales and capital expenditures, in each case presented herein on a non-GAAP basis due to the exclusion of acquisition-related costs, investment gains or results from the planned acquisition of Foot Locker, is not available without unreasonable effort due to high variability, complexity and uncertainty involved in forecasting and quantifying certain amounts with respect to and resulting from the planned acquisition that are necessary for such reconciliations. For those reasons, we are unable to address the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results.
Forward-Looking Statements Involving Known and Unknown Risks and Uncertainties
This release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified as those that may predict, forecast, indicate or imply future results or performance and by forward-looking words such as "believe", "anticipate", "expect", "estimate", "predict", "intend", "plan", "project", "goal", "will", "will be", "will continue", "will result", "could", "may", "might" or any variations of such words or other words with similar meanings. Any statements about DICK'S Sporting Goods, Inc.'s ("DICK'S Sporting Goods"), Foot Locker, Inc.'s ("Foot Locker") or the combined company's plans, objectives, expectations, strategies, beliefs, or future performance or events constitute forward-looking statements. These statements are subject to known and unknown risks, uncertainties, assumptions, estimates, and other important factors that change over time, many of which may be beyond DICK'S Sporting Goods', Foot Locker's and the combined company's control. DICK'S Sporting Goods', Foot Locker's and the combined company's future performance and actual results may differ materially from those expressed or implied in such forward-looking statements. Forward-looking statements should not be relied upon as a prediction of actual results. Forward-looking statements include statements regarding, among other things, the Company's future performance, including 2025 guidance, continued comp growth, and improved gross margin; the benefits of the combination of DICK'S Sporting Goods and Foot Locker (the "Transaction"), including future financial and operating results and the combined company's plans, objectives, expectations, intentions, growth strategies and culture and other statements that are not historical facts.
Factors that could cause actual results to differ materially from those expressed or implied in any forward-looking statements include, but are not limited to, current macroeconomic conditions, including prolonged inflationary pressures, potential changes to international trade relations, geopolitical conflicts and adverse changes in consumer disposable income; supply chain constraints, delays and disruptions; fluctuations in product costs and availability due to tariffs, currency exchange rate fluctuations, fuel price uncertainty and labor shortages; changes in consumer demand for products in certain categories and consumer lifestyle changes; intense competition in the sporting goods industry; the overall success of DICK'S Sporting Goods', Foot Locker's and the combined company's strategic plans and initiatives; DICK'S Sporting Goods', Foot Locker's and the combined company's vertical brand strategy and plans; DICK'S Sporting Goods', Foot Locker's and the combined company's ability to optimize their respective distribution and fulfillment networks to efficiently deliver merchandise to their stores and the possibility of disruptions; DICK'S Sporting Goods', Foot Locker's and the combined company's dependence on suppliers, distributors, and manufacturers to provide sufficient quantities of quality products in a timely fashion; the potential impacts of unauthorized use or disclosure of sensitive or confidential customer, employee, vendor or other information; the risk of problems with DICK'S Sporting Goods', Foot Locker's and the combined company's information systems, including e-commerce platforms, and any associated disruptions to operations; DICK'S Sporting Goods', Foot Locker's and the combined company's ability to attract and retain customers, executive officers and employees; our investments in GameChanger, our sports technology platform, DICK'S Media Network, and other technology to enhance our store fulfillment, in-store pickup and other foundational capabilities; potential reputational harm; our athlete experiences and associated costs, innovation, liability and competition associated with our specialty stores and vertical brands; increasing labor costs; the effects of the performance of professional sports teams within DICK'S Sporting Goods', Foot Locker's and the combined company's core regions of operations; DICK'S Sporting Goods', Foot Locker's ...
