Dick’s Sporting Goods Inc. (NYSE:DKS) shares slipped 5.8% in Tuesday’s premarket session after the retailer posted third-quarter results that came in below Wall Street expectations, even as it boosted its full-year forecast for its core DICK’S business.
The company delivered adjusted earnings of $2.07 per share, well under the consensus estimate of $2.71, while revenue totaled $4.17 billion, missing projections of $4.43 billion. These figures include the recently purchased Foot Locker business, which officially became part of the company on September 8. Excluding Foot Locker, the DICK’S banner generated 5.7% growth in comparable sales, supported by higher transaction volume and strong average ticket performance.
Despite the earnings shortfall, management raised full-year guidance for the DICK’S brand. The company now expects comparable sales to increase 3.5% to 4.0% in fiscal 2025, compared with the prior 2.0% to 3.5% outlook. Earnings expectations for the DICK’S segment were also lifted to $14.25–$14.55 per share, up from the earlier range of $13.90–$14.50.
“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.”
Meanwhile, the company outlined several steps underway at Foot Locker, including a review of underperforming assets, accelerated inventory clearance, and selective store closures. These actions, combined with merger-related charges, are expected to result in $500 million to $750 million in future pre-tax costs.
For the Foot Locker unit, DICK’S anticipates Q4 2025 gross margin to decline by 1,000 to 1,500 basis points year over year, and comparable sales to fall in the mid- to high-single-digit range.