Shares of Dick’s Sporting Goods jumped in pre-market trading after the retailer reported fourth quarter results.
The shares were up nearly 5.3 percent to $205.83 after the sports retailer said its Dick’s business delivered record setting fourth quarter sales. Comparable sales for the Dick’s business in the quarter rose 3.1 percent and was up 4.5 percent for 2025. The company said the uptick was driven by growth in average ticket and transactions.
“2025 was another strong year for the Dick’s business, with growth in comps and EPS (earnings per share) exceeding our expectations,” said executive chairman Ed Stack in a statement. “We’ve now owned the business for about six months and our excitement and our conviction in the long‑term opportunity continue to grow.”
Stack said the retailer is “encouraged by what we’re seeing with our Fast Break initiative, the evolution of our 11-store Foot Locker pilot, which we plan to rapidly scale in 2026.” He also said that the “clean out of the garage” initiatives at Foot Locker have set up the banner to “play offense and deliver the inflection point we expect beginning with back-to-school.”
He added that the company remained “very confident that Dick’s and Foot Locker are stronger together.”
Lauren Hobart, president and CEO, cited strong execution, powered by a great holiday season, for the strength in Q4 results, and noted non-operating GAAP operating margin of over 11 percent for the year at the Dick’s banner.
“Dick’s and Foot Locker are perfectly positioned at the intersection of sport and culture which is becoming an even stronger part of everyday life,” she said. “For 2026, we expect to drive continued comp growth, strategic expansion of our square footage, and strong profitability for the DICK’S Business. We also look forward to returning the Foot Locker Business to both top-line and bottom-line growth in 2026.”
Foot Locker shareholders approved Dick’s acquisition of its competitor back in August, and the transaction closed in in September. Following the close of the $2.5 billion deal, Stack’s team initiated its “clean out the garage” plan to transform the operation and make Foot Locker’s business accretive to Dick’s bottom line in 2026. He said in November that the plan was needed because the business had strayed from Retail 101 and its former executives did not execute the fundamentals. Former Foot Locker CEO Mary Dillon was expected to depart, and was replaced by Ann Freeman as head of Foot Locker North America. Also out was former president Franklin Bracken.
For the fourth quarter ended Jan. 31, 2026, net income fell 57.3 percent to $128 million, or $1.41 a diluted share, versus net income of $300 million, or $3.62, in the same year-ago period. Net sales rose 59.9 percent to $6.23 billion from $3.89 billion.
Wall Street was expecting adjusted diluted earnings per share (EPS) of $2.94 a diluted share, on revenue of $6.60 billion.
For full year 2025, net income was down 27.1 percent to $849 million, or $9.97 a diluted share, versus net income of $1.17 billion, or $14.05, in 2024. Net sales rose 28.1 percent to $17.22 billion from $13.44 billion.
For 2026 outlook, the company said it expects comparable sales growth in the range of 2.0 percent to 4.0 percent for the Dick’s business, along with full year pro forma comparable sale growth between 1.0 percent to 3.0 percent for the Foot Locker business. Adjusted diluted EPS was guided to the range of $13.50 to $14.50. Wall Street’s consensus before the earnings report was for EPS of $14.83, on revenue of $21.77 billion, for full year 2026.
During the year, the company opened 16 House of Sport locations and 15 Dick’s Field House locations. For 2026, it plans to open 14 additional House of Sport doors and 22 new Dick’s Field House stores.
