Dick's Sporting Goods Earnings Rise After Foot Locker Deal
Dick's Sporting Goods earnings report raised the full-year outlook after completing Foot Locker while integration charges pose margin pressure for traders.
KEY TAKEAWAYS
- Completed Foot Locker acquisition and raised full-year 2025 outlook for the DICK'S business.
- Q3 revenue reached $4.2 billion while DICK'S business comparable sales rose 5.7%.
- Company expects $500-$750 million in pre-tax charges tied to Foot Locker integration, pressuring near-term margins.
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Dick's Sporting Goods (DKS) reported on Nov. 25, 2025, that it completed the Foot Locker acquisition and raised its full-year 2025 outlook, despite third-quarter profit being reduced by costs related to integrating the acquired business.
Quarter Results and Guidance
The company said in a press release that comparable sales for the Dick's business rose 5.7% in the third quarter. Revenue reached $4.17 billion, a 36.3% increase year-over-year. Earnings per diluted share were $2.78 non-GAAP for the Dick's business, $2.07 non-GAAP consolidated, and $0.86 GAAP consolidated. Management attributed the profit shortfall to expenses tied to Foot Locker’s restructuring and integration. It raised full-year comparable sales guidance for the Dick's business to 3.5%–4.0% and EPS guidance to $14.25–$14.55, excluding Foot Locker’s direct contribution to comparable sales.
Foot Locker Integration and Charges
As part of an asset review, Dick's plans to close several Foot Locker stores and optimize the acquired business. The company expects pre-tax charges of $500–$750 million related to store closures, the asset review, and inventory cleanup. These costs will pressure near-term margins even as the acquisition expands Dick's global footprint. The company said, “We are incredibly excited about our acquisition of Foot Locker, which marks a bold and transformative step that expands our reach and creates a global platform at the intersection of sport and culture.”
