Dick’s Sporting Goods falls as Q3 earnings miss estimates

Investing.com -- Dick’s Sporting Goods Inc. (NYSE: DKS) reported third-quarter earnings that fell short of analyst expectations, sending shares down 5.8% premarket despite raising its full-year outlook for its core business.

The sporting goods retailer posted adjusted earnings per share of $2.07, significantly below the analyst consensus of $2.71. Revenue came in at $4.17 billion, missing estimates of $4.43 billion. The results include the newly acquired Foot Locker business, which closed on September 8. For the DICK’S business alone, comparable sales increased 5.7% YoY, driven by increases in both average ticket and transactions.

Despite the earnings miss, the company raised its full-year 2025 outlook for the DICK’S business, now expecting comparable sales growth of 3.5% to 4.0%, up from previous guidance of 2.0% to 3.5%. It also increased its earnings forecast for the DICK’S business to $14.25-$14.55 per share, compared to $13.90-$14.50 previously.

"The effectiveness of our long-term strategies and the best-in-class execution by our team are driving outstanding results for our DICK’S Business," said Lauren Hobart, President and CEO. "We are again raising our full-year 2025 outlook for the DICK’S Business."

The company noted it has initiated a review of unproductive assets at Foot Locker, including clearing inventory and closing underperforming stores, which along with merger costs is expected to result in future pre-tax charges of $500 to $750 million.

For the Foot Locker business, the company expects Q4 2025 gross margin to be down 1,000 to 1,500 basis points compared to last year, with comparable sales projected to decline mid- to high-single digits.

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