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DICK'S Gears Up to Report Q1 Earnings: What's in the Offing?
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Key Takeaways
DICK'S Q1 sales are expected to rise 58.5% year over year to $5.03 billion.
DKS saw strength in footwear, apparel and hardlines, supported by premium product demand.
DICK'S faces margin pressure from tariffs, tech spending and Foot Locker integration costs.
As DICK’S Sporting Goods Inc. (DKS - Free Report) prepares to announce its first-quarter fiscal 2026 earnings on May 27, before the market opens, investors are closely watching for insights into its performance this season.
DKS is expected to register a year-over-year sales increase in the quarter under review. The Zacks Consensus Estimate for revenues is pegged at $5.04 billion, indicating a rise of 58.7% from the year-ago quarter’s reported figure.
The consensus estimate for earnings is pegged at $2.93 per share, which indicates a dip of 13.1% from the year-ago reported number. The consensus mark has been unchanged in the past 30 days.
The company has a trailing four-quarter earnings surprise of 7.2%, on average.
DICK'S Sporting Goods, Inc. Price, Consensus and EPS Surprise
DICK’S first-quarter fiscal 2026 results are likely to have benefited from continued momentum in its core business, supported by healthy comparable sales growth, market share gains and strong demand across key categories such as footwear, apparel and hardlines. Management highlighted broad-based category strength and noted that consumers continued to respond well to innovative and premium products, with no meaningful signs of trade-down behavior across income groups. The company’s strategic positioning at the intersection of sport and culture, aided by events such as March Madness and the FIFA World Cup buildup, is expected to have supported sales trends in the quarter.
DICK’S first-quarter performance is also likely to have reflected benefits from its differentiated merchandise assortment and strong vendor relationships. Management emphasized robust momentum in running, signature basketball and women’s sports categories, while continued product innovation from strategic partners such as Nike and Adidas remained favorable. The company also continues to benefit from growth in emerging brands and vertical brands, helping drive higher average ticket and merchandise margins.
DKS’ margin performance in the to-be-reported quarter is expected to have gained from disciplined inventory management, healthy full-price selling and favorable merchandise mix. Management noted that fourth-quarter fiscal 2025 merchandise margin expansion was driven entirely by higher merchandise margins despite a promotional backdrop, reflecting strong execution by merchandising and inventory teams. The company also continues to benefit from the strength of higher-margin vertical brands and cleaner inventory positioning, which likely supported profitability in the first quarter.
DICK’S ongoing investments in digital capabilities, athlete engagement and experiential retail concepts are also likely to have supported first-quarter results. The company continues to see strong momentum in GameChanger and the DICK’S Media Network, with GameChanger delivering strong growth and profitability. Expansion of House of Sport and Field House locations, alongside enhanced personalization tools and AI-enabled capabilities, is expected to have strengthened customer engagement and omnichannel performance in the quarter to be reported.
However, DICK’S continues to face a challenging macroeconomic and geopolitical backdrop, which could weigh on near-term profitability. Management acknowledged that the operating environment remains dynamic, with ongoing uncertainty related to tariffs, global trade and broader consumer spending trends. While demand trends have remained resilient so far, the company’s guidance reflects caution around potential macro pressures and the impact of a more promotional retail environment. Tariff-related inflation and sourcing costs may also pressure margins if promotional activity intensifies or consumer demand softens.
The company is also witnessing elevated investment spending tied to strategic growth initiatives, which is expected to pressure margins in the near term. Management projected operating margin pressure in the first half of fiscal 2026 due to investments in technology, store expansion, supply chain capabilities and integration-related initiatives tied to the Foot Locker acquisition. Higher pre-opening expenses associated with House of Sport, Field House and Golf Galaxy Performance Center expansions, along with integration costs and delayed synergy realization from Foot Locker, are likely to have weighed on SG&A leverage in the quarter.
We expect adjusted SG&A expenses to increase 64.8% year over year for the first quarter and 31.1% for fiscal 2026. Our model anticipates adjusted operating income to decline 1.2% for the first quarter and increase 17.3% for fiscal 2026.
What the Zacks Model Unveils for DKS
Our proven model does not conclusively predict an earnings beat for DICK'S this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
DICK'S currently has an Earnings ESP of -1.54% and a Zacks Rank of 4 (Sell). You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
DKS’ Valuation Picture
DICK'S has a forward 12-month price-to-earnings ratio of 14.81x, which is below the five-year high of 19.19x and the Retail - Miscellaneous industry’s average of 14.83x.
Image Source: Zacks Investment Research
The recent market movements show that DKS’ shares have gained 3.7% in the past three months against the industry's 23.3% decline.
DKS Stock's Share Performance
Image Source: Zacks Investment Research
Stocks Poised to Beat Earnings Estimates
Here are a few companies that have the right combination of elements to post an earnings beat this time around:
Costco Wholesale (COST - Free Report) currently has an Earnings ESP of +1.95% and a Zacks Rank of 3. The company is likely to register growth in the top and bottom lines when it reports third-quarter fiscal 2026 results. The consensus mark for COST’s quarterly revenues is pegged at $69.5 billion, which indicates a 9.9% rise from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for Costco’s quarterly earnings has moved up 0.6% in the past 30 days to $4.91 per share. The consensus estimate indicates an increase of 14.7% from the year-ago quarter’s actual. COST has an average trailing four-quarter earnings surprise of 1.1%.
Bath & Body Works, Inc. (BBWI - Free Report) currently has an Earnings ESP of +10.79% and a Zacks Rank of 3. BBWI is likely to register top and bottom-line declines when it reports first-quarter fiscal 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.36 billion, which indicates a 4.2% decline from the prior-year quarter’s actual.
The consensus estimate for earnings has moved up by a penny in the past 30 days to 29 cents per share, which implies a 40.8% decrease from the year-ago quarter's actual. BBWI has an average trailing four-quarter earnings surprise of 1.9%.
Dollar General (DG - Free Report) has an Earnings ESP of +0.44% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for revenues is pegged at $10.8 billion, implying 3.8% growth from the year-ago quarter’s actual.
The consensus estimate for Dollar General’s earnings is pegged at $1.89 per share, implying 6.2% growth from the year-ago quarter’s reported number. DG delivered a trailing four-quarter earnings surprise of 24.8%, on average.
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DICK'S Gears Up to Report Q1 Earnings: What's in the Offing?
Key Takeaways
As DICK’S Sporting Goods Inc. (DKS - Free Report) prepares to announce its first-quarter fiscal 2026 earnings on May 27, before the market opens, investors are closely watching for insights into its performance this season.
DKS is expected to register a year-over-year sales increase in the quarter under review. The Zacks Consensus Estimate for revenues is pegged at $5.04 billion, indicating a rise of 58.7% from the year-ago quarter’s reported figure.
The consensus estimate for earnings is pegged at $2.93 per share, which indicates a dip of 13.1% from the year-ago reported number. The consensus mark has been unchanged in the past 30 days.
The company has a trailing four-quarter earnings surprise of 7.2%, on average.
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
Factors to Note About DKS’ Q1 Release
DICK’S first-quarter fiscal 2026 results are likely to have benefited from continued momentum in its core business, supported by healthy comparable sales growth, market share gains and strong demand across key categories such as footwear, apparel and hardlines. Management highlighted broad-based category strength and noted that consumers continued to respond well to innovative and premium products, with no meaningful signs of trade-down behavior across income groups. The company’s strategic positioning at the intersection of sport and culture, aided by events such as March Madness and the FIFA World Cup buildup, is expected to have supported sales trends in the quarter.
DICK’S first-quarter performance is also likely to have reflected benefits from its differentiated merchandise assortment and strong vendor relationships. Management emphasized robust momentum in running, signature basketball and women’s sports categories, while continued product innovation from strategic partners such as Nike and Adidas remained favorable. The company also continues to benefit from growth in emerging brands and vertical brands, helping drive higher average ticket and merchandise margins.
DKS’ margin performance in the to-be-reported quarter is expected to have gained from disciplined inventory management, healthy full-price selling and favorable merchandise mix. Management noted that fourth-quarter fiscal 2025 merchandise margin expansion was driven entirely by higher merchandise margins despite a promotional backdrop, reflecting strong execution by merchandising and inventory teams. The company also continues to benefit from the strength of higher-margin vertical brands and cleaner inventory positioning, which likely supported profitability in the first quarter.
DICK’S ongoing investments in digital capabilities, athlete engagement and experiential retail concepts are also likely to have supported first-quarter results. The company continues to see strong momentum in GameChanger and the DICK’S Media Network, with GameChanger delivering strong growth and profitability. Expansion of House of Sport and Field House locations, alongside enhanced personalization tools and AI-enabled capabilities, is expected to have strengthened customer engagement and omnichannel performance in the quarter to be reported.
However, DICK’S continues to face a challenging macroeconomic and geopolitical backdrop, which could weigh on near-term profitability. Management acknowledged that the operating environment remains dynamic, with ongoing uncertainty related to tariffs, global trade and broader consumer spending trends. While demand trends have remained resilient so far, the company’s guidance reflects caution around potential macro pressures and the impact of a more promotional retail environment. Tariff-related inflation and sourcing costs may also pressure margins if promotional activity intensifies or consumer demand softens.
The company is also witnessing elevated investment spending tied to strategic growth initiatives, which is expected to pressure margins in the near term. Management projected operating margin pressure in the first half of fiscal 2026 due to investments in technology, store expansion, supply chain capabilities and integration-related initiatives tied to the Foot Locker acquisition. Higher pre-opening expenses associated with House of Sport, Field House and Golf Galaxy Performance Center expansions, along with integration costs and delayed synergy realization from Foot Locker, are likely to have weighed on SG&A leverage in the quarter.
We expect adjusted SG&A expenses to increase 64.8% year over year for the first quarter and 31.1% for fiscal 2026. Our model anticipates adjusted operating income to decline 1.2% for the first quarter and increase 17.3% for fiscal 2026.
What the Zacks Model Unveils for DKS
Our proven model does not conclusively predict an earnings beat for DICK'S this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
DICK'S currently has an Earnings ESP of -1.54% and a Zacks Rank of 4 (Sell). You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
DKS’ Valuation Picture
DICK'S has a forward 12-month price-to-earnings ratio of 14.81x, which is below the five-year high of 19.19x and the Retail - Miscellaneous industry’s average of 14.83x.
Image Source: Zacks Investment Research
The recent market movements show that DKS’ shares have gained 3.7% in the past three months against the industry's 23.3% decline.
DKS Stock's Share Performance
Image Source: Zacks Investment Research
Stocks Poised to Beat Earnings Estimates
Here are a few companies that have the right combination of elements to post an earnings beat this time around:
Costco Wholesale (COST - Free Report) currently has an Earnings ESP of +1.95% and a Zacks Rank of 3. The company is likely to register growth in the top and bottom lines when it reports third-quarter fiscal 2026 results. The consensus mark for COST’s quarterly revenues is pegged at $69.5 billion, which indicates a 9.9% rise from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for Costco’s quarterly earnings has moved up 0.6% in the past 30 days to $4.91 per share. The consensus estimate indicates an increase of 14.7% from the year-ago quarter’s actual. COST has an average trailing four-quarter earnings surprise of 1.1%.
Bath & Body Works, Inc. (BBWI - Free Report) currently has an Earnings ESP of +10.79% and a Zacks Rank of 3. BBWI is likely to register top and bottom-line declines when it reports first-quarter fiscal 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.36 billion, which indicates a 4.2% decline from the prior-year quarter’s actual.
The consensus estimate for earnings has moved up by a penny in the past 30 days to 29 cents per share, which implies a 40.8% decrease from the year-ago quarter's actual. BBWI has an average trailing four-quarter earnings surprise of 1.9%.
Dollar General (DG - Free Report) has an Earnings ESP of +0.44% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for revenues is pegged at $10.8 billion, implying 3.8% growth from the year-ago quarter’s actual.
The consensus estimate for Dollar General’s earnings is pegged at $1.89 per share, implying 6.2% growth from the year-ago quarter’s reported number. DG delivered a trailing four-quarter earnings surprise of 24.8%, on average.