Dicks Sporting Goods Q3 2026 Earnings Revenue Surges 36.3% Amid 67% Net Income Drop

Dick's Sporting Goods (DKS) reported fiscal 2026 Q3 earnings on Dec 5, 2025, with revenue exceeding expectations but net income declining sharply. The company raised its FY25 guidance, citing strong sales growth and operational adjustments, though EPS fell short of 2025 levels due to acquisition-related costs.

Revenue

Total revenue surged 36.3% to $4.17 billion, driven by the Foot Locker acquisition and robust demand. Hardlines revenue hit $1.10 billion, while Apparel and Footwear each contributed $1.11 billion and $1.85 billion, respectively. Other segments added $101 million, completing the $4.17 billion total. The DICK’S Business saw a 5.7% comparable sales increase, while the Foot Locker segment added $930.9 million in net sales.

Earnings/Net Income

Earnings per share (EPS) plummeted 68.9% to $0.88, and net income fell 67.0% to $75.21 million, reflecting merger costs and share dilution. Despite strong top-line growth, the acquisition’s financial drag significantly impacted profitability.

Post-Earnings Price Action Review

A strategy of buying DKS when earnings beat and holding for 30 days yielded a 265.16% return, outperforming the benchmark’s 85.52%. The approach’s Sharpe ratio of 0.68 and maximum drawdown of 0% highlight its risk-adjusted appeal.

CEO Commentary

CEO Lauren R. Hobart emphasized growth in outdoor and fitness categories but acknowledged inventory management challenges. Strategic priorities include digital transformation, store expansion, and personalized promotions, despite macroeconomic uncertainties.

Guidance

The company raised FY2025 EPS guidance to $14.25–$14.55, reflecting confidence in operational execution and long-term market positioning.

Additional News

Dick’s expanded its retail footprint via the Foot Locker acquisition, adding 2,300 stores globally. CEO Hobart sold 20,083 shares in September, reducing her ownership by 6.27%. The company also announced a $1.2125 quarterly dividend ($4.85 annualized), reflecting a 39.02% payout ratio.

Revenue Breakdown

Hardlines revenue surged to $1.10 billion, with Apparel contributing $1.11 billion and Footwear reaching $1.85 billion. The DICK’S segment drove $3.236 billion in net sales, while the Foot Locker Business added $930.9 million. Other segments totaled $101 million, completing the $4.17 billion revenue.

Earnings Context

The EPS decline to $0.88 and net income drop to $75.21 million underscored the financial impact of acquisition integration costs and share dilution, despite a 36.3% revenue increase.

Strategic Moves

The Foot Locker acquisition has positioned DKS for global expansion, with international sales now included post-merger. Digital initiatives, including the GameChanger app, aim to enhance customer engagement, while a new Nickelodeon TV series promotes youth sports partnerships.

Financial Position

With $800 million in cash and a $2.0 billion credit facility, DKS remains well-capitalized. However, a debt-to-equity ratio of 1.37 and a current ratio of 1.7 highlight the need for prudent liquidity management amid expansion.