Dick’s Sporting Goods has reaffirmed its full-year guidance for fiscal 2025, anticipating earnings per share (EPS) in the range of $13.80 to $14.40, which aligns closely with analysts’ expectations of $14.29. The company projects revenue between $13.6 billion and $13.9 billion, also in line with the anticipated $13.9 billion. CEO Lauren Hobart emphasized the company’s strong performance and strategic confidence amidst a challenging macroeconomic environment, highlighting the effectiveness of their long-term strategies.
In the first fiscal quarter ending May 3, Dick’s reported a net income of $264 million or $3.24 per share, down from $275 million or $3.30 per share year-over-year. Adjusted for one-time items from its acquisition of Foot Locker, EPS was $3.37. Revenue rose to $3.17 billion, marking a 5% increase from $3.02 billion the previous year, slightly surpassing analysts’ expectations of $3.13 billion.
Investors are closely watching Dick’s recent $2.4 billion acquisition of Foot Locker. While this strategic move is expected to facilitate entry into international markets and attract sneaker enthusiasts, the acquisition raises concerns due to Foot Locker’s historical struggles in the retail sector. Despite initial market excitement leading to an 80% surge in Foot Locker shares, Dick’s stock fell about 15%.
The acquisition is set to close in the second half of fiscal 2025. Dick’s anticipates it will enhance earnings in the first full fiscal year post-acquisition, projecting cost synergies of between $100 million and $125 million. Notably, the current financial outlook does not yet account for costs or results associated with this acquisition.
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