Dick’s Sporting Goods (DKS) Stock Rises 5% After Q4 Beat and Raised Sales Outlook

TLDR

• Dick’s Sporting Goods stock rose ~5% in premarket after beating Q4 estimates on both revenue and earnings.
• Q4 revenue hit $6.23B vs. $6.07B expected; EPS came in at $3.45 adjusted vs. $2.87 expected.
• Full-year net sales guidance of $22.1B–$22.4B came in above analyst estimates of $21.98B.
• Profit guidance disappointed — FY2026 adjusted EPS of $13.50–$14.50 missed the $14.67 consensus.
• The Foot Locker integration is ongoing, with restructuring costs expected between $500M and $750M total.

Dick’s Sporting Goods beat Wall Street’s expectations for the holiday quarter, sending its stock up roughly 5% in premarket trading on Thursday. The results came in stronger than expected on both the top and bottom lines.

For the quarter ended January 31, revenue reached $6.23 billion, well above the $6.07 billion analysts had penciled in. The quarter includes Foot Locker revenue for the first time following Dick’s $2.4–$2.5 billion acquisition of the sneaker retailer last year.

DICK’S Sporting Goods, Inc., DKS

Adjusted earnings per share came in at $3.45, beating the $2.87 estimate. However, net income dropped 57% year-over-year to $128.3 million, or $1.41 per share, compared to $299.97 million, or $3.62 per share, in the same quarter last year.

The decline in net income reflects the heavy costs of digesting the Foot Locker deal. The company expects total integration-related costs to land between $500 million and $750 million, with around $390 million already recorded in fiscal 2025.

For fiscal 2026, Dick’s guided full-year net sales of $22.1 billion to $22.4 billion — above the $21.98 billion analysts expected. That’s a bright spot in an otherwise cautious outlook.

The profit side was a different story. Dick’s guided adjusted EPS of $13.50 to $14.50 for the full year, falling short of the $14.67 consensus estimate. That miss reflects the continued costs of cleaning up the Foot Locker business.

Foot Locker Integration in Focus

Executive Chairman Ed Stack told CNBC the company is “basically done” with rightsizing the Foot Locker operation. In fiscal 2025, Dick’s shut 57 stores globally across Foot Locker, Champs, Kids Foot Locker and WSS.

CEO Lauren Hobart said the company expects Foot Locker to return to both top-line and bottom-line growth in 2026. Full-year comparable sales for the Foot Locker business are forecast to rise 1% to 3%.

Dick’s has launched an 11-store pilot called “Fast Break,” which tests new product mixes and in-store presentation. The company said the pilot has delivered “standout performance” so far and plans to expand the format later this year.

The combined entity is now one of the largest distributors of Nike, Adidas and New Balance products, giving Dick’s more leverage in brand negotiations.

Growth Plans and Brand Momentum

On the expansion front, Dick’s plans to open around 14 new House of Sport locations and approximately 22 new DICK’S Field House stores in 2026.

The company has been catching a tailwind from brands like On Running and Hoka, which have helped offset softer demand for legacy names like Puma and Nike.

Dick’s said it expects an inflection in Foot Locker’s comparable sales and profitability starting with the back-to-school season.

For the fourth quarter, total sales rose roughly 60% year-over-year to $6.23 billion, up from $3.89 billion a year ago when the results didn’t include Foot Locker.

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