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- **DICK'S Business Strength**: Q3 comp +5.7% (2-year stack +10%), with House of Sport expansion and e-commerce growth >20%.
- **Foot Locker Turnaround**: $500M-$750M inventory/write-off charges expected, targeting 2026 back-to-school as inflection point.
- **Financial Impact**: FY25 DICK'S EPS guidance raised to $14.25-$14.55, despite Foot Locker Q4 operating loss.
- **Execution Confidence**: Management prioritizing inventory cleanup, store portfolio optimization, and brand partnerships.

**【Executive Chairman Opening Remarks】**
- Acquired Foot Locker in September 2025, to expand addressable market and deepen brand partnerships.
- Foot Locker Q3 pro forma comp sales declined 4.7% (North America -2.6%, International -10.2%) due to inventory misalignment and store underperformance.
- Priorities: Clean out $500M-$750M of unproductive inventory, close underperforming stores, and refresh assortment for 2026 back-to-school.
- Target: Foot Locker to be EPS accretive in FY26, excluding one-time costs.

**【CEO (Lauren Hobart) Business Update】**
- DICK'S business Q3 comp +5.7% (2-year stack +10%), driven by omnichannel athlete experience and House of Sport expansion.
- Raised FY25 guidance: Comp sales 3.5%-4%, EPS $14.25-$14.55.
- Key initiatives: 16 new House of Sport locations, e-commerce growth >20%, and trading cards/collateral expansion.

**【CFO (Navdeep Gupta) Financial Review】**
- Consolidated Q3 net sales $4.17B (+36.3%), driven by DICK'S +5.7% comp and partial Foot Locker contribution.
- DICK'S gross margin +27bps, operating margin 8.92% (vs. 9.47% prior year due to Foot Locker mix).
- Q4 expectations: Foot Locker operating loss ~$0M, DICK'S comp flat to +low single digits.
- FY25 DICK'S capex $1B, excluding Foot Locker costs.

**【Q&A Highlights】**
- Inventory cleanup: Q4 gross margin down 1,000-1,500bps for Foot Locker, with >$500M write-offs.
- Store closures: Underperforming stores to be identified by Q4, with no specific count yet.
- Brand alignment: Key vendors committed to supporting Foot Locker turnaround.
- DICK'S resilience: Q4 guidance reflects cautious holiday outlook despite strong Q3 momentum.


DICK'S Sporting Goods, Inc. (DKS) Q3 2026 Earnings Call Transcript

- **Q2 Growth**: 5% comps, 37.06% gross margin, $4.38 EPS beat expectations
- **Guidance Raise**: Full-year comp 2%-3.5%, EPS $13.90-$14.50
- **Strategic Initiatives**: 13 House of Sport openings in Q3, GameChanger app growth, DICK'S Media Network expansion
- **Foot Locker Deal**: $100M-$125M synergies; closing Sep 8
- **Tariff Management**: Gross margin expansion despite tariffs; surgical price increases
- **E-commerce Momentum**: Online sales growth outpacing company overall

**【Management Opening Remarks】**
- CEO Ed Stack highlighted Q2 2025 results with 5% comps, driven by strong execution of long-term strategies. 
- Announced pending Foot Locker acquisition closure on September 8, emphasizing strategic benefits of combining DICK'S and Foot Locker's omnichannel capabilities.
- Highlighted the convergence of sport and culture as a growth driver, with DICK'S uniquely positioned to capitalize on this trend.

**【CEO Commentary】**
- Raised full-year 2025 guidance: comp sales growth of 2%-3.5% (vs. prior 1%-3%) and EPS of $13.90-$14.50 (vs. prior $13.80-$14.40).
- Q2 results: 5% comps (vs. 4.5% last year), 30+ bps gross margin expansion, and $4.38 non-GAAP EPS.
- Key initiatives:
  - 16 House of Sport locations by year-end (13 openings in Q3)
  - 15 Field House locations by year-end
  - E-commerce growth outpacing company overall
  - GameChanger app with 7.4M unique users in Q2
- Emphasized omnichannel athlete experience, differentiated product assortment, and teammate engagement as growth drivers.

**【CFO Financial Commentary】**
- Q2 revenue: $3.65B (+5% YoY), driven by 4.1% avg ticket and 0.9% transactions.
- Gross margin: 37.06% (+33 bps YoY), driven by merch margin expansion and occupancy leverage.
- Non-GAAP operating income: $475M (13.02% of sales), down 105 bps YoY due to strategic investments.
- Balance sheet: $1.2B cash, no debt on $2B credit facility.
- Full-year outlook: 
  - Gross margin expansion offset by SG&A deleverage
  - Operating margin ~11.1% at midpoint
  - Preopening expenses $65M-$75M
  - Capex $1B

**【Q&A Highlights】**
- **Foot Locker Acquisition**: 
  - Plan to invest in stores, marketing, and apparel; expect $100M-$125M synergies
  - Closing on Sep 8; details to be shared on Q3 call
- **Tariffs**: 
  - Q2 gross margin expansion despite tariffs; surgical price increases
  - 2025 guidance includes all tariff impacts
- **Consumer Demand**: 
  - No slowdown seen; broad-based growth across footwear, apparel, team sports
  - E-commerce growth faster than company overall
- **GameChanger**: 
  - 7.4M unique users in Q2, 50%+ revenue growth
  - Integrating with DICK'S Media Network for personalized marketing
- **Foot Locker Strategy**: 
  - Focus on apparel, new product assortment, and store reinvestment
  - Brand partners excited about collaboration opportunities

DICK'S Sporting Goods, Inc. (DKS) Q2 2025 Earnings Call Transcript

- **$300B Global Expansion**: Foot Locker acquisition unlocks $100-125M annual synergies, targeting 3,200+ store network.
- **Q1 Momentum**: 4.5% comps, 40bps GM expansion, $3.37 EPS vs. $3.30 prior year.
- **Digital Surge**: GameChanger DAU +28%, e-commerce growth >10% Q1.
- **Tariff Resilience**: 2025 guidance includes all tariffs, 75bps gross margin expansion.
- **Acquisition Accretion**: EPS accretive in first full year, minimal store overlap with Foot Locker.

**【Executive Chairman Edward Stack - Acquisition Overview】**
- Announced transformative acquisition of Foot Locker, positioning DICK'S as a global leader in sports retail with 3,200+ stores.
- Expected $100-125M annual synergies and accretive to EPS in first full year post-close.
- Strategic rationale: Expand reach into urban, international markets; enhance brand partnerships; unlock operational efficiencies.

**【CEO Lauren Hobart - Q1 2025 Financial Highlights】**
- Q1 comps +4.5% (4.5% YoY), driven by +3.7% ticket and +0.8% transactions.
- Gross margin expanded 40bps to 36.7%, non-GAAP EPS $3.37 (+2.1% YoY).
- Digital growth outpaced company: e-commerce comps >10%.
- GameChanger app DAU +28% YoY, 6.5M unique users Q1.

**【CFO Navdeep Gupta - Financial Details】**
- Q1 revenue $3.17B (+5.2% YoY), operating income $360.4M (+7.7% YoY).
- SG&A expenses +7% YoY due to strategic investments in digital, marketing.
- Inventory +12% YoY, well-positioned for 2025 guidance of 1-3% comps.
- Full year EPS $13.80-14.40, gross margin +75bps YoY.

**【Key Q&A Takeaways】**
- **Tariff Mitigation**: Dynamic pricing, brand collaboration, tariff absorption in 2025 guidance.
- **Foot Locker Synergies**: Operational excellence, brand access, urban market expansion.
- **Digital Growth**: GameChanger monetization, DICK'S Media Network ad revenue.
- **Foot Locker Integration**: Minimal store overlap (<10%), focused on urban, international markets.


Dick's Sporting Goods (DKS) Q1 2025 Earnings Call Transcript

- **Record Growth**: FY2024 sales $13.4B (+8% 3-year stack), Q4 comps 6.4% (15% 3-year stack). EBIT margin 11.3%, EPS $14.05 (+10.5% YoY).
- **Strategic Expansion**: 16 new House of Sport locations in 2025, 18 Field House openings. 2025 capex $1B for real estate, tech, and adjacents.
- **Footwear Dominance**: 28% sales mix, 10x growth in 10 years. 2025 marketing push to accelerate share gains.
- **Profitability Targets**: 2025 gross margin +75bps, EBIT margin ~11.1%. 2025 EPS $13.80-$14.40.
- **Consumer Resilience**: 7M new athletes in 2024, growth across all income brackets. 2025 outlook cautious but confident in 1-3% comp growth.
- **Adjacents Growth**: GameChanger ($100M+ revenue, 40% CAGR) and Dick’s Media Network driving long-term gross margin expansion.


**【CEO Key Highlights】**
- **Record Performance**: FY2024 sales reached $13.4B, with 5.2% comp growth driven by 40% increase in average ticket and 1.2% transaction growth. Q4 comps rose 6.4%, outpacing 2023's 2.9% and 2022's 5.3%.
- **Market Leadership**: Commands ~9% of the $140B U.S. sports retail market, up 50bps YoY. EBIT margin expanded to 11.3%, with EPS of $14.05 (+10.5% YoY).
- **Strategic Growth Areas**: 
  1. **House of Sport & Field House**: 19 House of Sport locations (Q4 2024) to expand to 75-100 by 2027, with 16 openings in 2025. Field House locations to reach 44 by end-2025.
  2. **Footwear Dominance**: 28% of sales, up 900bps over 10 years. Q4 footwear comp growth outpaced total business.
  3. **Ecommerce Acceleration**: 2025 investments in tech, marketing, and Dick’s app to drive online share gains.
- **2025 Outlook**: 1-3% comp growth (midpoint 2% vs. 10% 3-year stack), EPS $13.80-$14.40, and 75bps gross margin expansion.

**【CFO Financial Breakdown】**
- **Q4 2024 Results**: 
  - Net sales: $3.89B (record high), +0.5% YoY (unfavorable $200M from 53rd week).
  - Gross margin: 34.96%, +39bps YoY (lower shipping costs, higher merch margin).
  - EBIT: $397.3M (10.2% margin), down 83bps YoY (strategic investments in tech, marketing).
  - EPS: $3.62 vs. $3.85 YoY (impacted by 53rd week).
- **FY2024 Results**: 
  - EBIT: $1.52B (11.3% margin), +$116M YoY.
  - EPS: $14.05 vs. $12.91 YoY (52-week basis).
- **2025 Guidance**: 
  - Sales: $13.6B-$13.9B, with 1-3% comp growth.
  - Gross margin: +75bps YoY (total 200bps 2022-2025 expansion).
  - EBIT margin: ~11.1% (midpoint), with 10bps expansion at high end.
  - Capital spend: $1B (incl. 16 House of Sport openings, 18 Field House locations).
  - Dividends: $1.21Q1 2025 (10% increase), +$3B share buyback program.

**【Q&A Key Takeaways】**
- **Tariff Strategy**: 85% branded, 15% private label, minimal China exposure. Diversified sourcing with brand partners; no tariff impact in 2025 guidance.
- **SG&A Management**: 2025 expects 101bps deleverage (first-half weighted), offset by 75bps gross margin expansion. Long-term focus on high-margin adjacents (GameChanger, Dick’s Media Network).
- **Consumer Resilience**: Q4 saw growth across all income demographics, 7M new athletes (+2.2M in Q4). 2025 outlook cautious but confident in 9% market share growth.
- **House of Sport Economics**: $35M/year1 omnichannel sales, 20% EBITDA margin. Capex ~$20M/loc (incl. real estate purchases).
- **Footwear Pipeline**: 2025 marketing blitz (e.g., March Madness), 3D imagery, RFID tech for faster fulfillment.


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