Dick’s Sporting Goods (DKS) Q2 2025 earnings

Dick’s Sporting Goods raised its full-year sales and earnings guidance after delivering fiscal second-quarter results that beat expectations.

The company is now expecting comparable sales to grow between 2% and 3.5%, up from a previous range of 1% and 3% and ahead of analyst estimates of 2.9%, according to StreetAccount. 

Dick’s said its earnings per share are now expected to be between $13.90 and $14.50, up from a previous range of $13.80 to $14.40. Analysts were expecting $14.39 per share, according to LSEG.

Here’s how the company performed compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:

• Earnings per share: $4.38 adjusted vs. $4.32 expected
• Revenue: $3.65 billion vs. $3.63 billion expected

The company’s reported net income for the three-month period that ended Aug. 2 was $381 million, or $4.71 per share, compared with $362 million, or $4.37 per share, a year earlier. Excluding one-time items related to its acquisition of Foot Locker and other costs, Dick’s posted earnings per share of $4.38.

Sales rose to $3.65 billion, up about 5% from $3.47 billion a year earlier. During the quarter, comparable sales also grew 5%, well ahead of expectations of 3.2%, according to StreetAccount. 

“Our performance shows how well our long-term strategies are working, the strength and resilience of our operating model and the impact of our team’s consistent execution,” CEO Lauren Hobart said in a news release. “Our Q2 comps increased 5.0%, with growth in average ticket and transactions, and we drove second quarter gross margin expansion.”

While Dick’s comparable sales guidance came in ahead of expectations, its full-year revenue outlook was slightly below estimates. The company said it’s expecting revenue to be between $13.75 billion and $13.95 billion, below estimates of $14 billion, according to LSEG.

Dick’s said its raised profit guidance includes the impact of tariffs that are currently in effect. In an interview with CNBC’s Courtney Reagan, Dick’s executive chairman Ed Stack said the company has implemented some price increases to offset the impact of higher duties but has been “surgical” in its approach.

“We’ve been able to do what we need to from a pricing standpoint, whether that’s from the national brands or from our own brands, and then other places where we’ve held price, we’ve been able to do that, and we’ve offset it someplace else, which is what you have to do in these in these situations, and the team’s done a great job doing that,” Stack said.

Hobart said during Thursday’s call with analysts that the retailer hasn’t seen its shoppers balking at the “small-level” price increases that have gone into effect.

Hobart said broadly Dick’s hasn’t seen any signs of a consumer spending slowdown as a result of tariffs. She said Dick’s saw growth across all of its key segments during the quarter.

The company said its guidance doesn’t include any potential impact from its acquisition of Foot Locker, such as costs or results from the planned takeover, which is expected to close on Sept. 8. 

In May, Dick’s announced it would be acquiring its longtime rival for $2.4 billion, giving it a competitive edge in the wholesale sneaker market, most importantly for Nike products, along with a bigger global presence.

Nike is a critical brand partner for both Dick’s and Foot Locker and, at times, their performance is reliant on how well the sneaker brand is doing. During the quarter, Stack said new drops from Nike’s revamped running portfolio, including the Pegasus Premium and the Vomero Plus, are performing so well, it can’t keep the shoes in stock.

“Anything that’s new, innovative and kind of the cool factor, is blowing out,” Stack said.

However, the acquisition also comes with risks. Foot Locker’s business has been in the midst of an ambitious turnaround under CEO Mary Dillon but the company is still struggling.

In the quarter ended Aug. 2, Foot Locker’s sales fell 2.4% and it posted a loss of $38 million. The company faces a range of existential challenges, including its heavy mall footprint, its small online business and a core consumer that often has less discretionary income than the core Dick’s consumer. 

Once the businesses are combined, Foot Locker’s struggles could ultimately weigh on Dick’s overall results. On the other hand, the combined company will become the No. 1 seller of athletic footwear in the U.S., which will allow it to better compete against its next biggest rival, JD Sports. 

Stack acknowledged to CNBC that Foot Locker’s earnings “were not great” but said the company has a strategy.

“We have a game plan of how to turn this around,” Stack told Reagan. “We think that…