Dicks Sporting Goods 2026 Q2 Earnings Beats Expectations with 5.3% Net Income Growth

Dick's Sporting Goods delivered Q2 results that exceeded expectations, with the company raising its full-year guidance as a result of strong performance. Earnings per share and revenue both beat estimates, and the company’s net income grew by 5.3% year-over-year. The improved outlook reflects confidence in continued sales momentum and gross margin expansion.

Revenue
The company reported total revenue of $3.65 billion for the second quarter, representing a 5.0% increase compared to $3.47 billion in the same period a year ago. The rise was driven by a 5.0% increase in comparable store sales, outpacing expectations. With no specific segment revenue data provided, the performance remained broad-based across the business.

Earnings/Net Income
Dick’s net income grew to $381.40 million in Q2, a 5.3% increase from $362.23 million in the prior year. The company’s earnings per share rose 7.1% to $4.82, reflecting continued operational improvement and strong profitability. These results underscore a solid performance in earnings growth.

Price Action
On the stock market, DKS shares edged down 2.21% during the latest trading day, declined 3.73% over the past week, and gained 0.14% month-to-date, reflecting mixed investor sentiment following the earnings release.

Post-Earnings Price Action Review
A post-earnings investment strategy involving the purchase of DKS shares following a beat and holding for 30 days proved highly effective, delivering a 173.22% return and significantly outperforming the benchmark’s 79.85%. The approach maintained strong risk-adjusted returns with a Sharpe ratio of 0.52 and achieved this without experiencing any maximum drawdown, suggesting a well-managed and disciplined investment strategy.

CEO Commentary
CEO Lauren Hobart highlighted the company’s strong Q2 performance, crediting the success to the strength of its omnichannel strategy, differentiated product access, and team culture. She emphasized the progress made in real estate repositioning through new store formats and e-commerce growth, as well as the transformative potential of the Foot Locker acquisition.

Guidance
The company raised its full-year comp sales growth forecast to 2% to 3.5%, from a prior range of 1% to 3%. It now anticipates consolidated sales of $13.75 billion to $13.95 billion and EPS of $13.90 to $14.50, reflecting gross margin expansion and strategic SG&A investments. Full-year net capital expenditures are expected to reach approximately $1 billion, with operating margins estimated at around 11.1% at the midpoint. The guidance includes the impact of current tariffs but excludes any results related to the Foot Locker acquisition.

Additional News
In recent weeks, Dick’s has continued to focus on its acquisition of Foot Locker, which is seen as a transformative step in expanding its market reach and strengthening its position in the global sports retail sector. Executive Chairman Ed Stack has highlighted the company’s strategic price adjustments in response to higher tariffs, noting a "surgical" approach to offsetting increased duties while maintaining customer satisfaction. CEO Lauren Hobart has also noted that consumer demand has remained resilient, with no signs of a slowdown due to macroeconomic pressures. She emphasized consistent growth across all key business segments, reinforcing confidence in the company’s long-term strategy.