Dick’s Sporting Items (DKS) earnings Q3 2025

Dick’s Sporting Items is planning to shut a slew of Foot Locker shops now that its acquisition of the sneaker firm is full, the corporate mentioned Tuesday when asserting fiscal third-quarter earnings.  

It is unclear what number of shops Dick’s plans to shutter, however the closures are half of a bigger restructuring it is implementing so Foot Locker is not a drag on its income come fiscal 2026, Dick’s govt chairman Ed Stack informed CNBC’s Courtney Reagan. 

“We have to clear out the storage,” mentioned Stack. “We have taken fairly aggressive markdowns to wash out outdated merchandise. We’re impairing some retailer belongings. We’ll shut some shops… the whole lot we’re doing is there to guard 2026 and simply form of do that one time.” 

The corporate declined to say what number of shops could be impacted and whether or not the restructuring will embody layoffs.

Consequently, Foot Locker’s comparable gross sales are anticipated to be down within the mid- to high-single digits within the present quarter with margins anticipated to fall between 10 and 15 share factors.

Past the Foot Locker enterprise, Dick’s shops noticed comparable gross sales rise 5.7% through the quarter, nicely forward of the three.6% analysts had anticipated, in keeping with StreetAccount.

For its namesake banner, the corporate is now anticipating comparable gross sales to rise between 3.5% and 4%, up from its prior vary of two% to three.5%. That is forward of expectations for 3.6% development, in keeping with StreetAccount. 

Dick’s can be now anticipating full-year earnings per share to be between $14.25 and $14.55, up from a earlier forecast of $13.90 to $14.50 and in keeping with expectations of $14.44 per share, in keeping with LSEG. 

This is how the big-box sporting items retailer carried out in contrast with what Wall Avenue was anticipating, based mostly on a survey of analysts by LSEG:

• Earnings per share: $2.78 adjusted vs. $2.71 anticipated
• Income: $4.17 billion vs. $3.59 billion anticipated

The corporate’s reported internet revenue for the three-month interval that ended Nov. 1 was $75.2 million, or 86 cents per share, in contrast with $227.8 million, or $2.75 per share, a 12 months earlier. Excluding one-time gadgets together with the affect of the Foot Locker acquisition, Dick’s posted earnings per share of $2.78.

Dick’s has been a standout performer throughout the retail trade and now has the problem of fixing Foot Locker’s enterprise so it does not weigh on its usually pristine outcomes. 

Dick’s $2.4 billion acquisition of Foot Locker gave it a large aggressive edge within the wholesale sneaker market, most significantly for Nike merchandise, and entry to each a world and concrete shopper.

It is also super-charging the corporate’s development. Due to Foot Locker’s income, nearly $931 million through the quarter, Dick’s gross sales rose a staggering 36% to $4.17 billion from $3.06 billion a 12 months earlier.

Nonetheless, it additionally acquired some dangers. Foot Locker has about 2,400 shops globally and has underperformed for years. Its shopper tends to skew lower-income than Dick’s’ and hasn’t held up as nicely in a softening economic system. 

Beneath CEO Mary Dillon, Foot Locker had labored to refresh its shops and alter the way in which it merchandises sneakers. Since its acquisition, it started testing adjustments in 11 shops in North America to see if the fixes enhance gross sales, together with slicing merchandise by over 20%, bringing again attire and altering Foot Locker’s “footwear wall.” 

“When you’d walked right into a Foot Locker retailer earlier than and also you appeared on the footwear wall … it was nothing however a run on sentence,” mentioned Stack. “It was only a complete bunch of footwear thrown up on the wall, and we took all of that down, we re-merchandised it, targeted on footwear we actually wished to promote. … It is early on, however we’re fairly passionate about what we have performed.” 

— CNBC’s Courtney Reagan contributed to this report.