Dick’s Sporting Goods Inc. reported third‑quarter 2025 results on November 25, 2025, with total revenue of $4.17 billion, a 36.3% year‑over‑year increase that matched the consensus estimate of $4.43 billion. Consolidated non‑GAAP earnings per share were $2.07, falling 23.6% below the $2.71 consensus estimate and 0.64 dollars lower than the prior‑year quarter. The miss reflects a combination of lower-than‑expected gross margin and the impact of one‑time integration costs associated with the Foot Locker acquisition.
The core DICK’S business drove a 5.7% rise in comparable sales, supported by the expansion of House of Sport and Field House formats that attract higher‑margin, experiential traffic. Foot Locker contributed $1.1 billion of revenue in the partial quarter but posted negative comparable sales, offsetting some of the core business growth. Gross margin fell to 33.1% from 35.8% year‑ago, largely due to higher cost of sales and inventory write‑downs linked to the Foot Locker integration.
Consolidated EBIT margin contracted to 2.2% from 2.5% in the prior year, while non‑GAAP EBIT margin was 5.8% versus 6.2% previously. The compression is driven by increased operating expenses, inventory optimization charges, and a higher cost of sales mix. GAAP EPS dropped to $0.86 from $2.75, underscoring the short‑term impact of integration costs and the partial‑quarter Foot Locker performance.
Management raised its full‑year 2025 guidance for the DICK’S business, increasing the comparable sales growth range to 3.5%–4.0% from the prior 2.0%–3.5% forecast. EPS guidance for the DICK’S business was lifted to $14.25–$14.55, reflecting confidence in the core business’s resilience and the expected upside from Foot Locker’s future contribution.
Headwinds remain as Foot Locker integration is expected to generate $500 million–$750 million in pre‑tax restructuring charges, which will continue to pressure margins in the near term. Despite these challenges, the company’s strategic focus on experiential formats and the anticipated long‑term revenue and margin upside from Foot Locker have tempered investor concerns. Management emphasized the importance of the House of Sport concept and expressed enthusiasm for Foot Locker’s future potential, noting that the “world‑class team” is committed to returning the brand to its rightful place in the industry.
Lauren Hobart, President and CEO, highlighted the success of long‑term strategies and the impact of experiential formats, stating, “House of Sport continues to be an incredibly impactful part of our long‑term strategy.” Executive Chairman Ed Stack added, “We are very enthusiastic about the future of Foot Locker. The world‑class team we have assembled is committed to returning Foot Locker to its rightful place in our industry.”
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