DICK'S Sporting Goods Q2 Earnings Top Estimates, Comparable Sales Rise 5%

DICK'S Sporting Goods reported Q2 FY25 results with net sales of $3.65 billion, up 5% YoY, and adjusted EPS of $4.38, beating estimates. The company's shares have gained 20% in the past three months, driven by robust comparable sales growth, healthy transaction growth, and improved margins. DICK'S Sporting expanded its gross margin and raised its full-year outlook, reaffirming confidence in its strategies. The company also reaffirmed its plans to acquire Foot Locker.

DICK'S Sporting Goods, Inc. (DKS) reported robust second-quarter (Q2) fiscal 2025 results, with net sales reaching $3.65 billion, up 5% year-over-year (YoY), and adjusted earnings per share (EPS) of $4.38, surpassing analysts' estimates. The company's shares have surged by 20% in the past three months, driven by strong comparable sales growth, healthy transaction growth, and improved margins.

The retailer's net income reached $381 million, up 5% from $362 million in the same period last year. Comparable sales grew by 5%, driven by higher average ticket values and increased transactions. Gross profit rose to $1.35 billion, up 5.9% YoY, while the gross margin expanded to 37.1%, reflecting improved profitability.

DICK'S Sporting Goods ended the quarter with 889 stores, after opening 11 and closing 7 locations year-to-date. The company's total selling space increased slightly to 45.1 million square feet. Specialty banners such as Golf Galaxy and Going Going Gone! contributed to the growth, alongside expansions of House of Sport and Field House concepts.

The company's cash and equivalents stood at $1.23 billion, down from $1.69 billion last year, while inventories increased by 7% to $3.40 billion. DICK'S Sporting Goods repurchased $299 million worth of shares and paid $196 million in dividends in the first half of FY25. On August 27, the board declared a quarterly dividend of $1.2125 per share, payable September 26, 2025.

DICK'S Sporting Goods raised its full-year fiscal 2025 guidance following the strong Q2 performance. The company expects net sales in the range of $13.75–$13.95 billion, with comparable sales growth of 2–3.5%. EPS is projected to be between $13.90 and $14.50 per share. Capital expenditures are set at about $1.2 billion gross and $1 billion net.

The company's plans to acquire Foot Locker, Inc., a leading footwear and apparel retailer, were reaffirmed. The deal, valued at approximately $2.5 billion, is expected to close on September 8, 2025, and is anticipated to be accretive to earnings per share in the full fiscal year post-close. Management highlighted the acquisition as a major strategic milestone that will create a global leader in the sports retail industry, broaden its consumer reach, and strengthen partnerships with top athletic brands.

References:
[1] https://www.fibre2fashion.com/news/apparel-news/us-dick-s-sporting-goods-q2-net-sales-reach-3-65-bn-comps-up-5--304899-newsdetails.htm
[2] https://www.nasdaq.com/articles/dicks-sporting-q2-earnings-top-estimates-comparable-sales-jump-5