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DKS Q3 Earnings Top Estimates, Foot Locker Acquisition Lifts Outlook
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Key Takeaways
DICK'S Sporting posted Q3 sales of $4.17 billion, up 36% year over year, with comparable sales rising 5.7%.
Gross profit increased while margins tightened due to mix impact from the Foot Locker business.
Management raised the FY25 sales and EPS outlook while progressing toward the Foot Locker acquisition.
DICK'S Sporting Goods, Inc. (DKS - Free Report) posted robust third-quarter fiscal 2025 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. Both sales and earnings increased from the prior-year figures.
The company delivered a solid performance in the third quarter, supported by healthy momentum across its core business. Strong engagement from customers and growth in both in-store and online activity contributed to higher sales and improved profitability within the main DICK’S business. The quarter also reflected progress in expanding new store concepts and enhancing the overall customer experience. Although the recent acquisition brought added costs and some near-term pressure, the core business continued to demonstrate resilience, benefiting from disciplined execution, effective merchandising and operational efficiencies.
The company reported adjusted earnings of $2.78 per share in the fiscal third quarter, lagging the Zacks Consensus Estimate of $2.62 per share and down from $2.75 per share recorded in the year-ago quarter.
DICK'S Sporting Goods, Inc. Price, Consensus and EPS Surprise
Net sales of $4.17 billion increased 36.3% year over year and surpassed the consensus estimate of $3.97 billion. The upside was driven by robust comps and healthy transaction growth. DKS continued gaining market share from online-only and omnichannel retailers. Consolidated comps grew 5.7% year over year, supported by higher traffic. Our model estimated comps to grow 2.4%.
DKS Records Higher Margins & Expenses
Gross profit rose 26.3% year over year to $1.38 billion and surpassed our estimate of $1.14 billion. Meanwhile, the gross margin contracted 264 bps mainly due to the mix impact from the lower gross margin Foot Locker business.
The adjusted SG&A expense rate of 26.8% rose 110 bps year over year. Adjusted SG&A expenses, in dollar terms, grew almost 40.8% year over year to $1.11 billion and were higher than our estimate of $836 million.
DKS’ Financial Health Snapshot
DICK’S Sporting ended the fiscal third quarter with cash and cash equivalents of $821 million and no outstanding borrowings under the revolving credit facility. It had a total debt of $1.9 billion as of Nov. 1, 2025. Total inventory rose 51% year over year.
This Zacks Rank #3 (Hold) company repurchased 1.4 million shares under its share repurchase program for $299 million in the 39 weeks ended Nov. 1, 2025. It had $3.2 billion remaining under its authorization as of the same date. DKS also paid $5 million in fiscal 2025 for shares repurchased in the prior fiscal year.
It paid quarterly dividends of $306 million for the 39 weeks ended Nov. 1, 2025. On Nov. 24, 2025, the company's board announced a quarterly cash dividend of $1.2125 per share on its common stock and Class B common stock. This is payable Dec. 26, 2025, to its stockholders of record as of Dec. 12.
Other Developments in DKS’ Release
During the third quarter, the company introduced 13 House of Sport locations and six DICK'S Field House locations.
The company completed its acquisition of all outstanding shares of Foot Locker on Sept. 8, 2025, following the merger agreement signed earlier that year. The transaction, valued at $2.5 billion, was primarily composed of share consideration, along with a cash component and the value of the company’s prior equity stake in Foot Locker.
Foot Locker’s results are now reflected in its performance from the acquisition date onward, excluding pro forma comparable sales. Following the close, the company assembled a world-class management team and began a comprehensive review of unproductive assets, including clearing excess inventory, closing underperforming stores and realigning the business for future growth. The acquisition of Foot Locker positions DKS to become a global leader in the sports retail industry, assembled a world-class management team and initiated a review of unproductive assets, which, along with merger and integration costs, are expected to result in future pre-tax charges of $500-$750 million.
What to Expect From DKS in FY25?
DICK’S Sporting Goods raised its full-year fiscal 2025 guidance following a strong third-quarter performance, which does not include acquisition-related expenses, investment losses or results from the acquisition of Foot Locker.
It projects net sales in the band of $13.95-$14 billion compared with $13.75-$13.95 predicted earlier. The company expects comps growth of 3.5-4%, up from the 2-3.5% mentioned earlier.
DKS continues to envision earnings to be $14.25-$14.55 per share compared with prior expectations of $13.90-$14.50. Management anticipates gross margin expansion for the full year. Operating margin is expected to be around 11.1%, with a potential 10 bps of expansion at the high end. Capital expenditures are planned at roughly $1.2 billion gross and $1.0 billion net.
The company’s shares have gained 18.6% in the past six months compared with the industry’s growth of 10.7%.
The Zacks Consensus Estimate for Boot Barn Holdings’ current financial-year sales and earnings indicate growth of 16.2% and 20.5%, respectively, from the year-ago reported numbers.
American Eagle Outfitters (AEO - Free Report) operates as a multi-brand specialty retailer in the United States and internationally, and currently carries a Zacks Rank of 2. AEO delivered a trailing four-quarter earnings surprise of 30.3%, on average.
The Zacks Consensus Estimate for American Eagle Outfitters’ current fiscal-year sales indicates a decline of 0.1% from the year-ago period reported number.
Stitch Fix, Inc. (SFIX - Free Report) engages in the provision of clothing and accessories in the United States, and currently carries a Zacks Rank of 2. SFIX delivered an average earnings surprise of 53.7% in the last four quarters.
The Zacks Consensus Estimate for Stitch Fix’s current financial-year sales indicates growth of 4.12% from the year-ago figure.
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DKS Q3 Earnings Top Estimates, Foot Locker Acquisition Lifts Outlook
Key Takeaways
DICK'S Sporting Goods, Inc. (DKS - Free Report) posted robust third-quarter fiscal 2025 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. Both sales and earnings increased from the prior-year figures.
The company delivered a solid performance in the third quarter, supported by healthy momentum across its core business. Strong engagement from customers and growth in both in-store and online activity contributed to higher sales and improved profitability within the main DICK’S business. The quarter also reflected progress in expanding new store concepts and enhancing the overall customer experience. Although the recent acquisition brought added costs and some near-term pressure, the core business continued to demonstrate resilience, benefiting from disciplined execution, effective merchandising and operational efficiencies.
The company reported adjusted earnings of $2.78 per share in the fiscal third quarter, lagging the Zacks Consensus Estimate of $2.62 per share and down from $2.75 per share recorded in the year-ago quarter.
DICK'S Sporting Goods, Inc. Price, Consensus and EPS Surprise
DICK'S Sporting Goods, Inc. price-consensus-eps-surprise-chart | DICK'S Sporting Goods, Inc. Quote
DKS’ Quarterly Performance: Key Metrics & Insights
Net sales of $4.17 billion increased 36.3% year over year and surpassed the consensus estimate of $3.97 billion. The upside was driven by robust comps and healthy transaction growth. DKS continued gaining market share from online-only and omnichannel retailers. Consolidated comps grew 5.7% year over year, supported by higher traffic. Our model estimated comps to grow 2.4%.
DKS Records Higher Margins & Expenses
Gross profit rose 26.3% year over year to $1.38 billion and surpassed our estimate of $1.14 billion. Meanwhile, the gross margin contracted 264 bps mainly due to the mix impact from the lower gross margin Foot Locker business.
The adjusted SG&A expense rate of 26.8% rose 110 bps year over year. Adjusted SG&A expenses, in dollar terms, grew almost 40.8% year over year to $1.11 billion and were higher than our estimate of $836 million.
DKS’ Financial Health Snapshot
DICK’S Sporting ended the fiscal third quarter with cash and cash equivalents of $821 million and no outstanding borrowings under the revolving credit facility. It had a total debt of $1.9 billion as of Nov. 1, 2025. Total inventory rose 51% year over year.
This Zacks Rank #3 (Hold) company repurchased 1.4 million shares under its share repurchase program for $299 million in the 39 weeks ended Nov. 1, 2025. It had $3.2 billion remaining under its authorization as of the same date. DKS also paid $5 million in fiscal 2025 for shares repurchased in the prior fiscal year.
It paid quarterly dividends of $306 million for the 39 weeks ended Nov. 1, 2025. On Nov. 24, 2025, the company's board announced a quarterly cash dividend of $1.2125 per share on its common stock and Class B common stock. This is payable Dec. 26, 2025, to its stockholders of record as of Dec. 12.
Other Developments in DKS’ Release
During the third quarter, the company introduced 13 House of Sport locations and six DICK'S Field House locations.
The company completed its acquisition of all outstanding shares of Foot Locker on Sept. 8, 2025, following the merger agreement signed earlier that year. The transaction, valued at $2.5 billion, was primarily composed of share consideration, along with a cash component and the value of the company’s prior equity stake in Foot Locker.
Foot Locker’s results are now reflected in its performance from the acquisition date onward, excluding pro forma comparable sales. Following the close, the company assembled a world-class management team and began a comprehensive review of unproductive assets, including clearing excess inventory, closing underperforming stores and realigning the business for future growth. The acquisition of Foot Locker positions DKS to become a global leader in the sports retail industry, assembled a world-class management team and initiated a review of unproductive assets, which, along with merger and integration costs, are expected to result in future pre-tax charges of $500-$750 million.
What to Expect From DKS in FY25?
DICK’S Sporting Goods raised its full-year fiscal 2025 guidance following a strong third-quarter performance, which does not include acquisition-related expenses, investment losses or results from the acquisition of Foot Locker.
It projects net sales in the band of $13.95-$14 billion compared with $13.75-$13.95 predicted earlier. The company expects comps growth of 3.5-4%, up from the 2-3.5% mentioned earlier.
DKS continues to envision earnings to be $14.25-$14.55 per share compared with prior expectations of $13.90-$14.50. Management anticipates gross margin expansion for the full year. Operating margin is expected to be around 11.1%, with a potential 10 bps of expansion at the high end. Capital expenditures are planned at roughly $1.2 billion gross and $1.0 billion net.
The company’s shares have gained 18.6% in the past six months compared with the industry’s growth of 10.7%.
DKS Stock's Price Performance
Image Source: Zacks Investment Research
Key Picks
Boot Barn Holdings (BOOT - Free Report) operates specialty retail stores in the United States and internationally, and carries a Zacks Rank #2 (Buy) at present. BOOT delivered a trailing four-quarter earnings surprise of 5.4%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Boot Barn Holdings’ current financial-year sales and earnings indicate growth of 16.2% and 20.5%, respectively, from the year-ago reported numbers.
American Eagle Outfitters (AEO - Free Report) operates as a multi-brand specialty retailer in the United States and internationally, and currently carries a Zacks Rank of 2. AEO delivered a trailing four-quarter earnings surprise of 30.3%, on average.
The Zacks Consensus Estimate for American Eagle Outfitters’ current fiscal-year sales indicates a decline of 0.1% from the year-ago period reported number.
Stitch Fix, Inc. (SFIX - Free Report) engages in the provision of clothing and accessories in the United States, and currently carries a Zacks Rank of 2. SFIX delivered an average earnings surprise of 53.7% in the last four quarters.
The Zacks Consensus Estimate for Stitch Fix’s current financial-year sales indicates growth of 4.12% from the year-ago figure.