Dick’s Sporting Goods reaffirmed its full-year guidance on Wednesday, maintaining its forecast amid existing tariffs. For fiscal 2025, the company anticipates earnings per share (EPS) between $13.80 and $14.40, aligning closely with analysts’ expectations of $14.29, and revenue projected between $13.6 billion and $13.9 billion, meeting the anticipated $13.9 billion. CEO Lauren Hobart emphasized confidence in the company’s strategies and performance despite the challenging macroeconomic landscape.
In terms of financial performance for the first fiscal quarter, Dick’s reported an adjusted EPS of $3.37 and revenue of $3.17 billion, surpassing Wall Street’s expectations of $3.13 billion. The net income for the quarter ending May 3 was $264 million or $3.24 per share, a slight decrease from $275 million or $3.30 per share the previous year. Sales increased by about 5% from $3.02 billion last year.
Investors had some prior indication of these results due to a pre-announcement related to Dick’s intended $2.4 billion acquisition of rival Foot Locker. This acquisition is seen as a strategic move to penetrate international markets and target sneaker customers who typically do not shop at Dick’s. However, the acquisition has elicited mixed reactions; while Foot Locker shares surged over 80% following the announcement, Dick’s shares fell approximately 15%. The transaction is expected to close in the second half of fiscal 2025, with projections of $100 million to $125 million in cost synergies expected to positively impact earnings in the first full year post-acquisition. For now, Dick’s guidance does not factor in any costs or results related to the acquisition.
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