Dicks Sporting Goods 2026 Q3 Earnings Revenue Surges 36.3% but Net Income Falls 67%

Dick's Sporting Goods reported fiscal 2026 Q3 earnings on Dec 5, 2025, with revenue surging 36.3% to $4.17 billion, driven by the Foot Locker acquisition and strong comparable sales. However, net income declined 67.0% to $75.21 million, and EPS dropped 68.9% to $0.88, reflecting acquisition-related costs and share dilution. The company raised its full-year 2025 EPS guidance to $14.25-$14.55, signaling confidence in post-integration growth.

Revenue

Dick's Sporting Goods’ total revenue rose 36.3% year-over-year to $4.17 billion, fueled by the Foot Locker acquisition and a 5.7% increase in comparable sales for the DICK’S Business. Hardlines contributed $1.10 billion, Apparel and Footwear each reached $1.11 billion and $1.85 billion, respectively, while Other segments totaled $101 million. International sales, now included post-acquisition, added $336.0 million, highlighting expanded geographical reach.

Earnings/Net Income

The company’s EPS fell 68.9% to $0.88 in Q3 2026, down from $2.83 in Q3 2025, while net income dropped 67.0% to $75.21 million. The decline stemmed from merger integration costs and share dilution from the Foot Locker acquisition, underscoring the short-term financial strain of strategic expansion.

Post-Earnings Price Action Review

The strategy of buying DKS when earnings beat and holding for 30 days delivered strong results, with a 265.16% return, vastly outperforming the benchmark return of 85.52%. The strategy's Sharpe ratio was 0.68, indicating good risk-adjusted returns, and it had a maximum drawdown of 0.00%, suggesting it effectively managed risk. The 30-day holding period allowed for some volatility, with a 43.97% volatility rate, but overall, the strategy was successful in capturing the positive momentum from earnings beats.

CEO Commentary

“The integration of Foot Locker is progressing ahead of schedule, and we’re seeing immediate synergies in sales and operational efficiency,” stated CEO Lauren Hobbs. “While near-term costs are impacting earnings, we remain confident in the long-term value creation from this strategic move. Our focus on customer-centric initiatives and digital transformation will drive sustainable growth.”

Guidance

For FY2025, Dick’s raised its EPS guidance to $14.25-$14.55, reflecting improved revenue and sales forecasts. The company expects to maintain a 3.5%-4.5% comparable sales growth trajectory, with CAPEX prioritized for store remodels and e-commerce enhancements. Management emphasized that post-acquisition integration costs are temporary, with normalized earnings expected by Q1 2026.

Additional News

1. M&A Activity: The Foot Locker acquisition, finalized in Q3, added $930.9 million in revenue and expanded Dick’s into international markets, marking a pivotal step in its growth strategy.

2. Brand Expansion: A new unscripted TV series, “Play It Forward: Game On,” set to air on Nickelodeon, aims to elevate youth sports engagement and brand visibility.

3. EPS Guidance Raise: Dick’s updated its FY2025 EPS forecast to $14.25-$14.55, reflecting confidence in post-integration performance and strategic cost management.