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Consolidated Net Sales: Increased 36.3% to $4.17 billion.

Dick's Business Comp Sales: Increased 5.7%.

Foot Locker Pro Forma Comp Sales: Decreased 4.7%.

Gross Margin for Dick's Business: Increased by 27 basis points.

Consolidated Gross Profit: $1.38 billion, 33.13% of net sales.

Non-GAAP EPS for Dick's Business: $2.78, up from $2.75 in the prior year's quarter.

Consolidated Non-GAAP Operating Income: $242.2 million or 5.81% of net sales.

Inventory Levels for Dick's Business: Increased 2% compared to Q3 of last year.

Net Capital Expenditures: $218 million.

Cash and Cash Equivalents: Approximately $821 million.

Updated Full Year Comp Sales Growth for Dick's Business: Expected to be 3.5% to 4%.

Updated Full Year EPS for Dick's Business: Expected to be $14.25 to $14.55.

Foot Locker Q4 Gross Margin Expectation: Down between 1,000 to 1,500 basis points.

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Release Date: November 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Dick's Sporting Goods Inc (NYSE:DKS) reported a strong third quarter with a 5.7% increase in comparable sales for the Dick's business, demonstrating continued market share gains.

The company raised its full-year outlook for the Dick's business, expecting comp sales growth of 3.5% to 4% and EPS in the range of $14.25 to $14.55.

Dick's Sporting Goods Inc (NYSE:DKS) successfully opened 13 new House of Sport locations and 6 new Fieldhouse locations in Q3, expanding its innovative store formats.

The company's e-commerce business continues to be a significant growth driver, growing faster than the overall Dick's business.

Dick's Sporting Goods Inc (NYSE:DKS) is leveraging its strong brand partnerships and differentiated product assortment to drive consumer demand and engagement.

The newly acquired Foot Locker business reported a 4.7% decline in pro forma comp sales for the full third quarter, with a significant 10.2% decline internationally.

Foot Locker's gross margins are expected to decline by 1,000 to 1,500 basis points in Q4 due to aggressive inventory markdowns and store closures.

The integration of Foot Locker is expected to result in future pre-tax charges of between $500 million and $750 million, impacting short-term profitability.

Foot Locker's historical underperformance and inventory mismanagement have necessitated a significant cleanup effort, including the closure of underperforming stores.

The acquisition of Foot Locker has led to a higher consolidated company effective tax rate, impacting overall financial results.

Q: How is Dick's Sporting Goods driving its strong performance, and what is the outlook for the holiday season? A: Edward Stack, Executive Chairman of the Board, highlighted the company's differentiated product assortment and engaging athlete experience as key drivers of their 5.7% comp growth. The company is confident about the holiday season, citing strong product offerings and consumer focus on sports, which led to raised guidance for Q4.

Q: What are the expectations for Foot Locker's inventory cleanup in Q4, and how will it impact Dick's Sporting Goods? A: Edward Stack explained that Foot Locker's gross margins are expected to decline by 1,000 to 1,500 basis points in Q4 due to aggressive inventory cleanup. The focus is on clearing unproductive inventory to make room for exciting new assortments, positioning Foot Locker for a fresh start in 2026.

Q: How will Foot Locker's acquisition be accretive to EPS in 2026, and what gives you confidence in this projection? A: Edward Stack expressed confidence in Foot Locker's turnaround, driven by operational improvements, a strong management team, and renewed brand partnerships. The company expects Foot Locker to be accretive to EPS in 2026, excluding one-time costs, based on these strategic initiatives.

Q: How will Dick's Sporting Goods manage markdowns at Foot Locker, and what is the expected impact on the market? A: The company plans to mark down older, unproductive inventory at Foot Locker, which is not expected to impact Dick's core business significantly. The focus is on introducing fresh, innovative products that will sell at full price, with no significant change anticipated in the overall promotional environment.

Q: What are the key challenges and opportunities in turning around Foot Locker's operations? A: Edward Stack identified underperforming operations and inventory management as core challenges. The company is leveraging Dick's expertise in merchandising and brand relationships to drive improvements. The focus is on enhancing store layouts and product assortments to boost sales and profitability.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.