Dick’s Sporting Goods Inc.’s shares increased 0.9% on Wednesday after the retailer’s first-quarter profit exceeded Wall Street analysts’ forecasts, marking the sixth consecutive quarter in which same-store sales grew by more than 4%.
The business maintained its full-year earnings forecast despite the “dynamic macroeconomic environment” of tariffs and other difficulties, it added.
Lauren Hobart, the CEO, stated that the business is still capitalizing on the trend of “people prioritizing health [and] active lifestyles.”
In line with its May 15 projection, which included the announcement of a $2.5 billion deal to acquire athletic footwear and clothing retailer Foot Locker Inc. (FL), the Pittsburgh-based retailer (DKS) reported that its average ticket climbed and margins expanded as its first-quarter same-store sales gained 4.5%.
Michael Baker, an analyst at D.A. Davidson, reaffirmed his buy recommendation for Dick’s Sporting Goods, stating that the retailer has increased its market share and same-store sales significantly more than the sporting goods category as a whole.
Dick’s Sports Goods outperformed the industry by more than 500 basis points for the sixth consecutive quarter, but the sector as a whole fell by 3.4%, despite the company’s 4.5% same-store sales growth, Baker said.
The Foot Locker merger presents a chance “to create a global leader in the sports retail industry by serving a broader set of athletes,” according to a statement released by Executive Chairman Ed Stack on Wednesday.
Dick’s reported that its first-quarter profit dropped from $275 million, or $3.30 per share, in the same quarter last year to $264 million, or $3.24 per share.
The FactSet average estimate of $3.21 per share was surpassed by its adjusted profit of $3.37 per share.
Revenue exceeded the consensus forecast of $3.12 billion by 5.2% to $3.18 billion.
In comparison to the analyst’s forecast of $14.17 per share, Dick’s stated that it still anticipates full-year 2025 earnings of $13.80 to $14.40 per share.
“Maintaining guidance, which does not include any impact from the pending Footlocker deal, despite likely incremental tariff pressure is good news in our view,” Baker stated.
The findings followed the company’s May 15 announcement that, as a result of a “strong start” to the year, it anticipated reporting adjusted first-quarter earnings of $3.37 per share. Additionally, it forecasted a 4.5% increase in same-store sales for the first quarter.
Dick’s announced that same day that it had reached an agreement to pay $2.5 billion to acquire Foot Locker Inc. (FL) in order to expand its network of larger, standalone stores by adding the sneaker chain’s fleet of mall stores.
In 2025, Dick’s Sporting Goods’ stock has dropped 22%, while the SPDR S&P Retail ETF XRT has dropped 3.4% and the S&P 500 SPX has up 0.7%.
