Dick's Sporting Goods Profit Falls Short Of Expectations, Sticks To Annual Outlook Despite Tariffs

Dick’s Sporting Goods Inc DKS shares are trading higher on Wednesday after the company reported first-quarter 2025 results.

The company reported first-quarter adjusted earnings per share of $3.37, missing the analyst consensus estimate of $4.34. Quarterly sales of $3.17 billion (+5.2% year over year) missed the Street view of $3.59 billion.

The company reported comparable sales growth of 4.5% in the quarter under review, compared with 5.3% growth a year ago.

Dick’s reported gross profit of $1.17 billion, higher than $1.09 billion a year ago. Quarterly gross margin expanded to 36.70% from 36.29%.

Also Read: What’s Next For Foot Locker? Analyst Says Dick’s Deal Is Timely

Dick’s exited the quarter with cash and equivalents worth $1.04 billion, down from $1.65 billion in the year-ago period. The company generated operating cash flow of $178.05 million, down from $231.71 million. Net inventories totaled $3.57 billion, higher than $3.20 billion a year ago.

On May 15, 2025, the company announced a definitive agreement to acquire Foot Locker for approximately $2.4 billion in equity value.

The deal, expected to close in the second half of 2025, will be financed through a mix of cash, debt, and share issuance, subject to shareholder and regulatory approvals.

“Earlier this month, we announced our plans to acquire Foot Locker, a move that represents a truly exciting and transformational moment for Dick’s. For many years we’ve admired Foot Locker’s brand and the powerful community they’ve built in sneaker culture. By bringing our two great brands together, we see the opportunity to create a global leader in the sports retail industry by serving a broader set of athletes,” said Ed Stack, executive chairman of Dick’s Sporting Goods.

On May 27, the company declared a quarterly dividend in the amount of $1.2125 per share, which is payable in cash on June 27 to stockholders of record at the close of business on June 13, 2025.

Lauren Hobart, president and CEO, reaffirmed the company’s 2025 outlook, citing a robust start to the year and strong belief in their strategies and operational capabilities while acknowledging the dynamic macroeconomic environment.

The company maintained its FY2025 sales forecast of $13.60 billion to $13.90 billion, compared with the analyst expectations of $13.86 billion.

It reaffirmed the FY2025 GAAP EPS outlook of $13.80 to $14.40, which includes the expected impact from all tariffs currently in effect.

Price Action: DKS shares are trading higher by 0.99% to $175.94 at last check Wednesday.

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