Dick's Sporting Goods reported first-quarter net sales of $5.17 billion on Wednesday, up 63% from a year earlier, as its newly acquired Foot Locker $FL business returned to comparable sales growth for the first time since the end of fiscal 2024.
On a net income basis, the company earned $319.8 million in the quarter, translating to $3.54 per diluted share; in the year-ago period, those figures stood at $264.3 million and $3.24 per diluted share, respectively. Stripping out acquisition charges and litigation settlements left adjusted earnings of $2.90 per diluted share, falling just short of the $2.92 consensus estimate; revenue of $5.17 billion cleared the $5.09 billion analysts had projected, according to CNBC.
The Dick's namesake business posted comparable sales growth of 6%, driven by gains in average ticket and transactions across footwear, apparel, and hardlines. Foot Locker's proforma comparable sales edged up 0.6% — reversing a 2.9% drop in the prior-year period — while the U.S. Foot Locker banner, the primary focus of Dick's turnaround work, delivered a 6.4% gain, according to CNBC. Taken together, the two banners generated proforma consolidated comparable sales growth of 4.1%.
Dick's acquired Foot Locker in September 2025 for total consideration of approximately $2.5 billion. The integration strategy has centered on exiting unprofitable locations, refreshing product assortments, and testing a remodel concept called Fast Break. That program, initially a pilot covering 11 stores, has grown to about 100 locations worldwide; the company expects roughly 250 stores to be operating under the format before the back-to-school selling period gets underway, the company said. Locations in the Fast Break format are outperforming, with double-digit comparable sales gains and meaningfully better merchandise margins.
The turnaround effort continues to carry a price tag. Acquisition-related charges totaled $96.5 million for the quarter, with $53.8 million attributed to merger and integration expenses such as severance and store closures, and the remaining $42.7 million tied to inventory markdowns and clearance activity. The company expects $200 million in such charges for all of fiscal 2026, with additional costs to follow over the medium term.
Updated comparable sales guidance for fiscal 2026 lifted the floor on both banners: the Dick's nameplate is now expected to deliver growth of 2.5% to 4%, versus the previous 2% to 4% range, and Foot Locker's range moved up to 1.5% to 3% from a prior 1% to 3%. Full-year consolidated GAAP operating income guidance was narrowed to a range of $1.69 billion to $1.81 billion, while non-GAAP operating income guidance was raised to $1.71 billion to $1.83 billion. The company continues to expect full-year adjusted earnings per diluted share of $13.50 to $14.50.
Dick's stock fell nearly 5% in premarket trading Wednesday.