Dick's Sporting Goods Earnings Show Sales Gain, Profit Hit

Dick's Sporting Goods earnings, disclosed in a press release on Mar. 12, 2026, showed record fourth-quarter sales while consolidated profits were reduced by acquisition-related charges tied to Foot Locker. The company set FY2026 non-GAAP earnings-per-share (EPS) guidance that reflects ongoing integration costs.

Q4 Results and Profit Impact

For the 13 weeks ended Jan. 31, 2026, consolidated net sales reached $6.2 billion. The DICK'S Business posted comparable-sales growth of 3.1%, while proforma consolidated comparable sales rose 0.8%. The company attributed the topline strength to its core banners, noting that the newly acquired Foot Locker business dampened overall growth.

DICK'S Business generated segment profit of $445 million in the quarter. Foot Locker operated at a loss due to inventory write-downs and acquisition-related expenses. For fiscal 2025, the company recorded $390 million in pre-tax charges, including $236 million in the fourth quarter. This included about $218 million related to inventory liquidation and $18 million for merger and integration costs, which significantly reduced consolidated profitability.

For the full fiscal year, consolidated net sales totaled $17.2 billion. Consolidated non-GAAP diluted EPS was $13.20, while on a DICK'S Business basis excluding 9.6 million dilutive shares from the acquisition, non-GAAP EPS was $14.58. GAAP diluted EPS stood at $9.97. The difference between consolidated and stand-alone results reflects accounting and dilution effects from incorporating Foot Locker.

The board approved a 3.0% increase in the annual dividend, raising it to $5.00 per share, balancing cash returns with ongoing integration efforts.

Foot Locker Integration and FY2026 Guidance

The company forecast FY2026 non-GAAP diluted EPS between $13.50 and $14.50 and GAAP diluted EPS between $13.70 and $14.70. It expects non-GAAP operating income of $1.7 billion to $1.8 billion, assumes about 91 million diluted shares and a 25.5% tax rate, and excludes corporate acquisition costs and litigation. This guidance signals that integration and related expenses will continue to affect earnings.

Management projects the DICK'S Business to deliver comparable-sales growth of 2.0% to 4.0%, with net sales between $14.5 billion and $14.7 billion and segment profit of $1.6 billion to $1.7 billion, representing about 11.0% to 11.2% of sales. The core banner remains the primary driver of near-term sales and profitability, even as consolidated margins adjust for acquisition impacts.

On a proforma basis, Foot Locker is expected to post comparable-sales growth of 1.0% to 3.0%, net sales of roughly $7.6 billion to $7.7 billion, and segment profit of $100 million to $150 million, or about 1.3% to 1.9% of sales. The company will begin reporting Foot Locker’s quarterly comparable sales in the fourth quarter of fiscal 2026, the 14th month after closing, to provide clearer insight into the turnaround.

The Foot Locker acquisition closed on Sept. 8, 2025, for $2.5 billion, consisting of $2.1 billion in Dick’s shares, $223 million in cash, and recognition of $112 million in pre-existing equity. As of Jan. 31, 2026, inventories totaled $4.9 billion, split roughly $3.4 billion at DICK'S and $1.5 billion at Foot Locker. The combined store count was 3,195, with 888 DICK'S Business locations and 2,561 Foot Locker stores. Since closing, the company has closed 57 Foot Locker stores, relocated 35, opened 16 House of Sport sites and 15 DICK'S Field Houses, and plans about 14 additional House of Sport openings and 22 Field House openings. An SEC Form 8-K filed on Mar. 11, 2026, included an exhibit detailing the comparable-sales methodology.

Management described the quarter and guidance as reflecting solid consumer demand at DICK'S alongside near-term integration costs related to inventory optimization and store rationalization, which will continue to influence consolidated results as the businesses integrate.