DICK’S Sporting Goods reported sharply different second-quarter performances across its core DICK’S business and recently acquired Foot Locker operations, highlighting the near-term integration and merchandising challenge created by the acquisition.
The DICK’S Business generated segment profit of $485.2 million during the quarter, up from $475 million a year earlier. The Foot Locker Business, by contrast, posted a segment loss of $31.9 million.
The divergence also appeared in comparable sales. DICK’S Business comparable sales increased 4.9%, supported by broad-based category growth, higher average ticket and increased transactions. Management also pointed to strong sales related to the 2026 FIFA World Cup.
Pro forma comparable sales at Foot Locker fell 3.6%. DICK’S said Foot Locker was more exposed to legacy footwear silhouettes and more dependent on launch and retro footwear products at a time when the athletic footwear marketplace became increasingly promotional.
Consolidated second-quarter net sales increased 53.2% to $5.59 billion from $3.65 billion, largely reflecting the addition of Foot Locker. But consolidated operating margin fell to 7.9% from 12.4%, and net income declined 17% to $315 million from $381 million.
Diluted EPS fell to $3.50 from $4.71. The current period also reflected the dilutive impact of 9.6 million shares issued in connection with the Foot Locker acquisition.
The company recorded $29.3 million of Foot Locker acquisition-related costs during the quarter, including merger and integration costs, severance, store closing charges and professional fees. DICK’S also recorded tariff refunds related to prior-year costs and costs associated with changes to its store operating model.
Management revised its full-year outlook because of the more promotional athletic footwear and apparel environment. DICK’S maintained its core-business comparable-sales outlook of 2.5% to 4% growth, but lowered the Foot Locker pro forma comparable-sales outlook to a range of negative 2% to flat.
DICK’S also lowered operating-income expectations for both businesses. For the full year, it now expects the DICK’S Business to generate segment profit of $1.54 billion to $1.60 billion, while Foot Locker is expected to post a segment loss of $40 million to $80 million.
The company operated 3,104 locations across the DICK’S and Foot Locker businesses at the end of the quarter, underscoring the scale of the integration effort now underway.
KEY QUOTES:
“The DICK’S Business delivered a strong second quarter with broad-based growth across categories. As the quarter progressed, conditions across portions of the athletic footwear and apparel marketplace became increasingly promotional.”
Ed Stack, Executive Chairman of DICK’S Sporting Goods
“We’re proud of our second quarter performance in the DICK’S Business, where we delivered comp sales growth of 4.9% and gained market share despite growing pressure across portions of the athletic footwear and apparel marketplace.”
Lauren Hobart, President and Chief Executive Officer of DICK’S Sporting Goods
