Dicks Sporting Goods 2026 Q1 Earnings Mixed Results as Net Income Declines 4%

Dick's Sporting Goods (DKS) reported its fiscal 2026 Q1 earnings on May 28th, 2025. The company's revenue rose by 5.2% to $3.17 billion, falling short of analyst expectations, while the EPS of $3.37 missed the consensus estimate of $4.34. Despite the revenue increase, net income declined by 4% compared to the previous year. The company maintained its guidance for 2025, projecting revenue between $13.6 billion and $13.9 billion, with EPS expected to range from $13.80 to $14.40, considering current tariffs.

Revenue

In the first quarter, Dick's Sporting Goods achieved a 5.2% growth in total revenue, reaching $3.17 billion. This marked an increase from $3.02 billion in the same period the previous year.

Earnings/Net Income

In 2026 Q1, Dick's Sporting Goods reported an EPS decline of 2.6% to $3.33, down from $3.42 in the previous year. Net income also decreased by 4.0% to $264.29 million, compared to $275.30 million in 2025 Q1. The earnings performance was disappointing, reflecting challenges faced during the period.

Post-Earnings Price Action Review

The strategy of buying Dick's Sporting Goods stock during revenue misses and holding for 30 days has historically resulted in significant returns, achieving a 190.44% gain compared to the benchmark's 86.09% return. Despite experiencing a maximum drawdown of -59.34%, the strategy demonstrated a positive Sharpe ratio of 0.53, indicating favorable risk-adjusted returns. The compound annual growth rate (CAGR) was 23.92%, and the volatility stood at 44.78%, suggesting that while there was notable volatility, the strategy provided strong absolute and relative performance over time.

CEO Commentary

Lauren Hobart, President and CEO, expressed optimism about the company's performance, highlighting a 4.5% increase in Q1 comps. She emphasized the strategic focus on omnichannel athlete experience and product differentiation despite macroeconomic challenges, reaffirming confidence in long-term strategies and the positive momentum from acquiring Foot Locker.

Guidance

Dick's Sporting Goods reaffirmed its 2025 outlook, expecting comp sales growth between 1% and 3%, with EPS guidance ranging from $13.80 to $14.40. The company anticipates consolidated sales of $13.6 billion to $13.9 billion, with a projected improvement in gross margins by approximately 75 basis points due to strategic investments.

Additional News

In non-earnings news, Dick's Sporting Goods announced a definitive agreement to acquire Foot Locker for approximately $2.4 billion, a move expected to close in the second half of 2025. This acquisition aims to bolster Dick's market presence globally and enhance its brand partnerships. The transaction is anticipated to be accretive to earnings in the first full fiscal year post-close, with cost synergies projected between $100 million and $125 million. Additionally, the company declared a quarterly dividend of $1.2125 per share, payable on June 27, 2025, to stockholders of record as of June 13, 2025.