DICK'S Sporting Goods, Inc.

What they do

DICK'S Business operates DICK'S Sporting Goods, Golf Galaxy, Going Going Gone! and Public Lands banners plus experiential DICK'S House of Sport, DICK'S Field House and Golf Galaxy Performance Center concepts in the United States, along with the GameChanger youth sports platform. Foot Locker Business operates Foot Locker, Kids Foot Locker, Champs Sports, WSS and atmos banners across North America, Europe, Asia and Australia, plus licensed stores in Europe, the Middle East and Asia. The company was founded in 1948 and is headquartered in Coraopolis, Pennsylvania.

Revenue drivers

• DICK'S Business — The legacy banners (DICK'S Sporting Goods, Golf Galaxy, Going Going Gone!, Public Lands) plus GameChanger; this segment delivered 4.9% comparable sales growth in the second quarter of fiscal 2026, with growth in average ticket and transactions.
• Foot Locker Business — Acquired September 8, 2025, for $2.5 billion and reported as a separate segment; it contributed $3.1 billion of net sales in fiscal 2025 and posted a pro forma comparable sales decline of 3.3% for fiscal 2025 and 3.6% in the second quarter of fiscal 2026.
• Football/soccer category and FIFA World Cup — The company invested significantly around the 2026 FIFA World Cup and cited strong results from it as a driver of broad-based DICK'S Business growth in the second quarter of fiscal 2026.
• Growth concepts and platforms — House of Sport, GameChanger and DICK'S Media Network are identified by management as profitable growth opportunities that contributed to the second quarter of fiscal 2026 performance.

Recent performance

For the second quarter ended August 1, 2026, DICK'S reported earnings per diluted share of $3.50 (non-GAAP $3.53) versus $4.71 ($4.38 non-GAAP) in the prior-year quarter, with current-year results diluted by the 9.6 million shares issued for the Foot Locker acquisition. DICK'S Business comparable sales grew 4.9%, while Foot Locker Business pro forma comparable sales declined 3.6% amid a challenging athletic footwear marketplace. Full-year fiscal 2026 revenue was $17.22 billion with net income of $849.0 million and diluted EPS of $9.97. Operating cash flow was $1.54 billion in fiscal 2026, and the most recent balance sheet (August 1, 2026) shows total assets of $18.25 billion and shareholder equity of $5.73 billion. Fiscal 2026 includes a full year of DICK'S and a partial year of Foot Locker, which contributed $3.1 billion of net sales and a $60.0 million net loss from the acquisition date through year-end.

Strategy

Management's strategic pillars are athlete experience, differentiated product, brand engagement and teammates, and the company is repositioning its store portfolio toward experiential formats like DICK'S House of Sport, DICK'S Field House and Golf Galaxy Performance Centers while investing in digital, eCommerce and DICK'S Media Network. Following the Foot Locker acquisition, a new leadership team was assembled and an eleven-store North American 'Fast Break' pilot testing improved merchandise presentation and assortment was expanded to ten additional Los Angeles stores. The company is also reviewing unproductive Foot Locker inventory and store assets. GameChanger, a youth sports live-streaming, scheduling and scorekeeping platform, is owned and operated as part of the DICK'S Business.

Risks

• Consumer discretionary sensitivity — DICK'S depends on discretionary spending and cites inflation, elevated rates and recessionary pressures as potential causes of lower traffic, reduced comparable sales and lower average transaction value.
• Athletic footwear and apparel marketplace weakness — The most recent earnings release cites increasingly promotional conditions and weaker-than-expected product launches, which disproportionately affect the Foot Locker Business due to its exposure to legacy footwear silhouettes and launch/retro product.
• Intense competition — The company operates in a highly fragmented retail marketplace competing with large-format, specialty, traditional, mass merchant, department store and online retailers.
• International and supply chain exposure — Foot Locker's international footprint exposes the company to geopolitical developments, tariffs, currency fluctuations and supply chain disruptions, and the company relies on products manufactured outside the United States.

Outlook

Management maintained its full-year 2026 DICK'S Business comparable sales outlook of 2.5% to 4.0% growth but lowered the Foot Locker Business pro forma comparable sales outlook to a range of negative 2.0% to 0.0%. It also lowered the operating income outlook for both the DICK'S and Foot Locker Businesses, citing a more cautious view of the balance of the year while stating confidence in the long-term opportunities at both businesses.