Dick’s Sporting Goods (DKS) Stock: Q2 Earnings Beat, Raised Guidance, and Foot Locker Acquisition

TLDR

• DKS stock at $212.00, down 1.48% as of Aug. 28, 2025, 9:40 AM EDT.
• Q2 earnings per share $4.38 vs. $4.32 expected; revenue $3.65B vs. $3.63B expected.
• Comparable sales grew 5%, exceeding 3.2% estimates.
• Full-year comp sales outlook raised to 2%–3.5%; EPS raised to $13.90–$14.50.
• $2.4B Foot Locker acquisition closing Sept. 8 to expand footwear market leadership.

Dick’s Sporting Goods, Inc. (NYSE: DKS) traded at $212.00, down 1.48% in early market action on August 28, 2025, following the release of its fiscal second-quarter earnings dated August 28.

DICK’S Sporting Goods, Inc. (DKS)

The retailer beat Wall Street expectations on both earnings and revenue while raising full-year guidance. With strong momentum in comparable sales and its upcoming $2.4 billion acquisition of Foot Locker, Dick’s is positioning itself as a dominant force in the athletic retail space.

Q2 Earnings Beat and Guidance Raise

The company reported adjusted earnings per share of $4.38, topping analyst expectations of $4.32, while GAAP EPS came in stronger at $4.71. Revenue rose 5% year-over-year to $3.65 billion, surpassing forecasts of $3.63 billion. Net income climbed to $381 million compared to $362 million in the same quarter last year.

Comparable sales increased 5%, well above estimates of 3.2%. CEO Lauren Hobart credited the gains to effective strategy execution, noting growth in both average ticket size and transaction volume. Gross margin expanded by over 30 basis points to 37.06%.

Dick’s lifted its full-year comparable sales growth outlook to 2%–3.5% and raised EPS expectations to $13.90–$14.50. Revenue is projected between $13.75 billion and $13.95 billion, slightly below analyst estimates of $14 billion.

Operating and Financial Highlights

Operating income reached $475 million, representing 13.02% of net sales. SG&A expenses rose nearly 10% to $864 million, leading to a 105-basis-point deleverage. Inventory increased 7.1% year-over-year as the company ramped up product availability, particularly in key brands such as Nike.

The retailer closed the quarter with $1.2 billion in cash, $213 million in net capital expenditures, and returned $96 million to shareholders through dividends. Store expansion continued, with one House of Sport and four Field House openings in Q2, alongside aggressive e-commerce growth.

Foot Locker Acquisition and Strategic Implications

Dick’s expects to close its $2.4 billion acquisition of Foot Locker on September 8, 2025, subject to final procedures. The deal positions Dick’s as the leading U.S. athletic footwear retailer, strengthening ties with Nike, whose new product drops have seen overwhelming demand.

While Foot Locker’s recent struggles—including a 2.4% sales decline and a $38 million quarterly loss—pose risks, executives see turnaround potential. Executive Chairman Ed Stack emphasized a strategy to revitalize Foot Locker while keeping it as a separate entity. Post-acquisition, Dick’s plans to break out performance for both brands.

CEO Hobart highlighted opportunities to refresh Foot Locker’s merchandising and product assortment, making the combined company a more valuable partner for wholesale brands.

Outlook

Despite rising SG&A expenses and short-term profit pressure expected in Q3, Dick’s Sporting Goods is maintaining momentum with strong comps, higher guidance, and a bold acquisition strategy. If the Foot Locker integration succeeds, DKS could secure long-term dominance in the athletic retail sector.

 

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