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DICK'S Sporting Q1 Earnings Miss Estimates, Comparable Sales Up 6%
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Key Takeaways
DKS Q1 adjusted EPS fell to $2.90, missing consensus by a penny despite sales beating estimates.
Net sales jumped 62.7% YoY to $5.17B, aided by the addition of Foot Locker and 6% comps in DICK'S business.
DKS guided FY26 net sales of $22.1B-$22.4B and kept the non-GAAP EPS view at $13.50-$14.50.
DICK'S Sporting Goods, Inc. (DKS - Free Report) posted first-quarter fiscal 2026 results, wherein the top line beat the Zacks Consensus Estimate and increased year over year. However, earnings missed the consensus mark and declined from the prior-year quarter.
The company delivered a strong first-quarter fiscal 2026 performance, with net sales rising sharply year over year and beating the Zacks Consensus Estimate, supported by continued momentum in the core DICK’S business and contributions from the Foot Locker acquisition. However, profitability was softer, as non-GAAP earnings declined from the prior-year quarter and missed estimates despite healthy comparable sales growth across the business.
The company reported adjusted earnings of $2.90 per share in the fiscal first quarter, lagging the Zacks Consensus Estimate of $2.91 and declining from $3.37 recorded in the year-ago quarter.
DICK'S Sporting Goods, Inc. Price, Consensus and EPS Surprise
Net sales of $5.17 billion increased 62.7% year over year and surpassed the consensus estimate of $5.06 billion. The upside was driven by the addition of the Foot Locker business, along with continued strength in the core DICK’S business. Consolidated comps for DICK'S Business grew 6% year over year, on growth in average ticket and transactions and broad-based momentum across footwear, apparel and hardlines.
Results reflected the inclusion of the Foot Locker business and the dilutive impact of shares issued for the acquisition, while core demand stayed healthy. Pro forma consolidated comparable sales increased 4.1% in the quarter.
DKS Records Higher Margins & Expenses
Gross profit rose 44.5% year over year to $1.68 billion and came in line with our estimates. Meanwhile, the gross margin contracted 411 bps.
The SG&A expense rate of 22.5% fell 220 bps year over year. SG&A expenses, in dollar terms, grew almost 48.2% year over year to $1.16 billion and were lower than our estimate of $1.31 billion.
DKS’ Financial Health Snapshot
DICK’S Sporting ended the fiscal first quarter with cash and cash equivalents of $998.3 million. Inventories totaled $5.42 billion, up 52%, reflecting the addition of Foot Locker inventory, while long-term debt and financing lease obligations stood at $1.91 billion.
This Zacks Rank #3 (Hold) company repurchased 0.7 million shares under its share repurchase program for $141.2 million in the first quarter of fiscal 2026. It had $3 billion remaining under its authorization as of May 2, 2026. DKS also paid $5 million in fiscal 2025 for shares repurchased in the prior fiscal year.
On May 26, 2026, the company’s board of directors announced a quarterly cash dividend of $1.25 per share for holders of its common and Class B common stock. The dividend will be distributed on June 26 to its shareholders recorded as of the close of business on June 12.
What to Expect From DKS in FY26?
For full-year fiscal 2026, the company expects net sales of $22.1-$22.4 billion. In its full-year fiscal 2026 segment outlook, the company expects net sales of $14.5-$14.7 billion for the DICK’S business and $7.6-$7.7 billion for the Foot Locker business. Operating income guidance was updated to $1.69-$1.81 billion on a GAAP basis and $1.71-$1.83 billion on a non-GAAP basis, while GAAP earnings are projected at $13.27-$14.27 per diluted share; non-GAAP earnings are still expected at $13.50-$14.50. The company expects planned gross capital spending of about $1.6 billion for fiscal 2026.
At the segment level, DKS raised the low end of its comparable sales outlook to 2.5%-4.0%, while the Foot Locker business raised the low end of its pro forma comparable sales view to 1.5%-3.0%. Management also outlined segment profit expectations of $1.60-$1.68 billion for the DICK’S business and $110-$150 million for Foot Locker.
The company’s shares have gained 14.3% in the past three months against the industry’s decline of 18.7%.
Image Source: Zacks Investment Research
Key Picks
Some better-ranked stocks in the retail space are Tapestry, Inc. (TPR - Free Report) , Victoria's Secret & Co. (VSCO - Free Report) and Levi Strauss & Co. (LEVI - Free Report) .
The Zacks Consensus Estimate for Tapestry’s current fiscal-year earnings and sales indicates growth of 36.3% and 13.2%, respectively, from the year-ago actuals. TPR delivered a trailing four-quarter average earnings surprise of 15.6%.
Victoria's Secret is a specialty retailer of women's intimates, sleepwear, apparel, sport and swimwear, and prestige fragrances and body care. It currently has a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of 55.1%, on average.
The Zacks Consensus Estimate for VSCO’s current fiscal-year sales and earnings indicates growth of 6.2% and 16.3%, respectively, from the year-ago reported numbers.
Levi Strauss designs and markets jeans, casual wear and related accessories for men, women and children. It currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for Levi Strauss’ current fiscal-year earnings and sales suggests growth of 11.9% and 5.2%, respectively, from the year-ago actuals. LEVI delivered a trailing four-quarter average earnings surprise of 21.4%.
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DICK'S Sporting Q1 Earnings Miss Estimates, Comparable Sales Up 6%
Key Takeaways
DICK'S Sporting Goods, Inc. (DKS - Free Report) posted first-quarter fiscal 2026 results, wherein the top line beat the Zacks Consensus Estimate and increased year over year. However, earnings missed the consensus mark and declined from the prior-year quarter.
The company delivered a strong first-quarter fiscal 2026 performance, with net sales rising sharply year over year and beating the Zacks Consensus Estimate, supported by continued momentum in the core DICK’S business and contributions from the Foot Locker acquisition. However, profitability was softer, as non-GAAP earnings declined from the prior-year quarter and missed estimates despite healthy comparable sales growth across the business.
The company reported adjusted earnings of $2.90 per share in the fiscal first quarter, lagging the Zacks Consensus Estimate of $2.91 and declining from $3.37 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 $5.17 billion increased 62.7% year over year and surpassed the consensus estimate of $5.06 billion. The upside was driven by the addition of the Foot Locker business, along with continued strength in the core DICK’S business. Consolidated comps for DICK'S Business grew 6% year over year, on growth in average ticket and transactions and broad-based momentum across footwear, apparel and hardlines.
Results reflected the inclusion of the Foot Locker business and the dilutive impact of shares issued for the acquisition, while core demand stayed healthy. Pro forma consolidated comparable sales increased 4.1% in the quarter.
DKS Records Higher Margins & Expenses
Gross profit rose 44.5% year over year to $1.68 billion and came in line with our estimates. Meanwhile, the gross margin contracted 411 bps.
The SG&A expense rate of 22.5% fell 220 bps year over year. SG&A expenses, in dollar terms, grew almost 48.2% year over year to $1.16 billion and were lower than our estimate of $1.31 billion.
DKS’ Financial Health Snapshot
DICK’S Sporting ended the fiscal first quarter with cash and cash equivalents of $998.3 million. Inventories totaled $5.42 billion, up 52%, reflecting the addition of Foot Locker inventory, while long-term debt and financing lease obligations stood at $1.91 billion.
This Zacks Rank #3 (Hold) company repurchased 0.7 million shares under its share repurchase program for $141.2 million in the first quarter of fiscal 2026. It had $3 billion remaining under its authorization as of May 2, 2026. DKS also paid $5 million in fiscal 2025 for shares repurchased in the prior fiscal year.
On May 26, 2026, the company’s board of directors announced a quarterly cash dividend of $1.25 per share for holders of its common and Class B common stock. The dividend will be distributed on June 26 to its shareholders recorded as of the close of business on June 12.
What to Expect From DKS in FY26?
For full-year fiscal 2026, the company expects net sales of $22.1-$22.4 billion. In its full-year fiscal 2026 segment outlook, the company expects net sales of $14.5-$14.7 billion for the DICK’S business and $7.6-$7.7 billion for the Foot Locker business. Operating income guidance was updated to $1.69-$1.81 billion on a GAAP basis and $1.71-$1.83 billion on a non-GAAP basis, while GAAP earnings are projected at $13.27-$14.27 per diluted share; non-GAAP earnings are still expected at $13.50-$14.50. The company expects planned gross capital spending of about $1.6 billion for fiscal 2026.
At the segment level, DKS raised the low end of its comparable sales outlook to 2.5%-4.0%, while the Foot Locker business raised the low end of its pro forma comparable sales view to 1.5%-3.0%. Management also outlined segment profit expectations of $1.60-$1.68 billion for the DICK’S business and $110-$150 million for Foot Locker.
The company’s shares have gained 14.3% in the past three months against the industry’s decline of 18.7%.
Image Source: Zacks Investment Research
Key Picks
Some better-ranked stocks in the retail space are Tapestry, Inc. (TPR - Free Report) , Victoria's Secret & Co. (VSCO - Free Report) and Levi Strauss & Co. (LEVI - Free Report) .
Tapestry is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. It carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Tapestry’s current fiscal-year earnings and sales indicates growth of 36.3% and 13.2%, respectively, from the year-ago actuals. TPR delivered a trailing four-quarter average earnings surprise of 15.6%.
Victoria's Secret is a specialty retailer of women's intimates, sleepwear, apparel, sport and swimwear, and prestige fragrances and body care. It currently has a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of 55.1%, on average.
The Zacks Consensus Estimate for VSCO’s current fiscal-year sales and earnings indicates growth of 6.2% and 16.3%, respectively, from the year-ago reported numbers.
Levi Strauss designs and markets jeans, casual wear and related accessories for men, women and children. It currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for Levi Strauss’ current fiscal-year earnings and sales suggests growth of 11.9% and 5.2%, respectively, from the year-ago actuals. LEVI delivered a trailing four-quarter average earnings surprise of 21.4%.