DICK’S Sporting Goods posts strong Q1 sales after Foot Locker acquisition, though profitability concerns pressure shares.
Stock Earnings Results
May 27, 2026
Table of Contents
May 27, 2026
DICK’S Sporting Goods, Inc. (NYSE: DKS) reported first-quarter 2026 results with strong revenue growth and raised comparable sales guidance, but shares came under pressure after non-GAAP earnings slightly missed estimates and margins declined.
DICK’S Sporting Goods is a sporting goods retailer that sells athletic apparel, footwear, equipment, outdoor products, and team sports merchandise. The company also owns Foot Locker following its acquisition.
The company reported non-GAAP EPS of $2.90, slightly below estimates of $2.91, representing a negative 0.3% earnings surprise.
Revenue came in at $5.16 billion, above estimates of $5.04 billion, with revenue growth of 62.7%.
DICK’S reported consolidated net sales of $5.17 billion, up 62.7% from the prior-year quarter.
The increase was driven largely by the inclusion of the Foot Locker business, while the company also continued to grow its core DICK’S business.
GAAP diluted EPS increased to $3.54, compared with $3.24 in the prior-year quarter.
Non-GAAP diluted EPS declined to $2.90 from $3.37 a year earlier. The company noted that current-year results included dilution from 9.6 million shares issued in connection with the Foot Locker acquisition.
GAAP operating margin fell to 8.7% of net sales, down from 11.5% a year earlier.
Non-GAAP operating margin declined to 7.3%, compared with 11.4% in the prior-year quarter. That margin compression likely weighed on investor sentiment despite the revenue beat.
DICK’S scaled Foot Locker’s Fast Break initiative to about 100 stores globally during the quarter.
The company said it remains on track to reach roughly 250 Fast Break stores by back-to-school season.
DICK’S raised the low end of its full-year 2026 comparable sales outlook for both the DICK’S and Foot Locker businesses.
The DICK’S business is now expected to grow comparable sales by 2.5% to 4.0%, up from the prior range of 2.0% to 4.0%.
The Foot Locker business is now expected to grow comparable sales by 1.5% to 3.0%, up from the prior range of 1.0% to 3.0%.
DICK’S continues to expect full-year 2026 non-GAAP EPS of $13.50 to $14.50.
The company updated GAAP EPS guidance to $13.27 to $14.27, compared with the prior range of $13.70 to $14.70.
Inventories rose 52% year-over-year to $5.42 billion.
Long-term debt and financing lease obligations increased 28% to $1.91 billion. Both figures likely reflect the larger consolidated business after the Foot Locker acquisition.
DICK’S repurchased $141 million of stock during the quarter.
The company also paid $114 million in dividends, up 14% from the prior-year quarter.
Investors are likely to watch whether DICK’S can turn Foot Locker scale into stronger earnings leverage.
The key areas are:
DICK’S delivered strong top-line growth, but the stock reaction shows investors focused on profitability.
Revenue beat expectations and comp guidance improved, but non-GAAP EPS missed slightly and operating margins compressed. The next test is whether DICK’S can integrate Foot Locker, improve store productivity, and rebuild margins while keeping sales momentum intact.
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