Dicks Sporting Goods 2026 Q1 Earnings Revenue Growth as Net Income Declines 4%

Dick's Sporting Goods (DKS) reported its fiscal 2026 Q1 earnings on Jun 09th, 2025. The total revenue of Dick's Sporting Goods increased by 5.2% to $3.17 billion in 2026 Q1, up from $3.02 billion in 2025 Q1. Dick's Sporting Goods's EPS declined 2.6% to $3.33 in 2026 Q1 from $3.42 in 2025 Q1. Meanwhile, the company's net income declined to $264.29 million in 2026 Q1, down 4.0% from $275.30 million reported in 2025 Q1. The company reaffirmed its 2025 outlook, maintaining expectations for net sales between $13.6 billion and $13.9 billion, with earnings per diluted share projected between $13.80 and $14.40. This guidance reflects the company's confidence in its strategic growth initiatives despite a challenging macroeconomic environment.

Revenue

The total revenue of Dick's Sporting Goods increased by 5.2% to $3.17 billion in 2026 Q1, up from $3.02 billion in 2025 Q1.

Earnings/Net Income

Dick's Sporting Goods's EPS declined 2.6% to $3.33 in 2026 Q1 from $3.42 in 2025 Q1. Meanwhile, the company's net income declined to $264.29 million in 2026 Q1, down 4.0% from $275.30 million reported in 2025 Q1. The EPS decline reflects challenges in maintaining profitability amid revenue growth.

Post-Earnings Price Action Review

The strategy of buying DKS when there is a revenue miss and holding for 30 days resulted in an impressive 346.83% return, significantly outperforming the benchmark return of 93.67%. Despite experiencing a maximum drawdown of -53.85%, the strategy demonstrated a positive Sharpe ratio of 0.78, indicating favorable risk-adjusted returns. The compound annual growth rate (CAGR) was 35.13%, coupled with volatility at 44.75%, suggesting that while there was considerable fluctuation, the strategy still delivered substantial returns. This approach underscores the potential rewards of strategic investment decisions in response to specific earnings scenarios, highlighting the importance of timing and market conditions to enhance portfolio performance.

CEO Commentary

Lauren Hobart, President and Chief Executive Officer, highlighted that Dick's Sporting Goods delivered a strong performance with a 4.5% increase in comparable sales, driven by strategic pillars such as an omnichannel athlete experience and a differentiated product assortment. She acknowledged the dynamic macroeconomic environment but emphasized the company's confidence and operational strength, reaffirming that their long-term strategies are working effectively. Hobart expressed optimism about the upcoming acquisition of Foot Locker, viewing it as a transformational opportunity to create a global leader in the sports retail industry and serve a broader set of athletes.

Guidance

Dick's Sporting Goods expects full-year 2025 net sales to range between $13.6 billion and $13.9 billion, with earnings per diluted share projected between $13.80 and $14.40. The company anticipates comparable sales growth of 1.0% to 3.0%. This outlook incorporates the impact from tariffs currently in effect and excludes any acquisition-related costs or results from the Foot Locker merger, which is expected to be accretive to earnings in the first full fiscal year post-close.

Additional News

Recently, Dick's Sporting Goods announced its acquisition of Foot Locker, a strategic move valued at approximately $2.4 billion aimed at creating a global leader in the sports retail industry. The acquisition, subject to customary closing conditions and regulatory approval, is expected to close in the second half of 2025. Additionally, Dick's Board has approved a new five-year share repurchase program of up to $3 billion, continuing purchases under a prior $2 billion program authorized in December 2021. The company also declared a quarterly dividend of $1.2125 per share, payable on June 27, 2025, to stockholders of record as of June 13, 2025.