Dick’s Sporting Goods (DKS) earnings Q1 2026

Foot Locker is slowly returning to growth, but the costly conversion of its former sneaker store remains a burden to the parent company Dick’s Sporting Goods‘ As a result, the company reported an earnings miss on Wednesday.

In the three months ending May 2, Dick’s incurred $96.5 million in acquisition-related charges. This includes $53.8 million for merger and acquisition costs, such as severance and store closings, and $42.7 million to clear sales inventory.

These expenses contributed to the decline in Dick’s profitability because its profitability results exceeded expectations.

Foot Locker, meanwhile, achieved comparable sales growth of 0.6% on the measure for the first time since the end of fiscal 2024, while comparable sales at Dick’s namesake stores rose 6% for a total growth figure of 4.1%. At Foot Locker US, where Dick’s has focused much of its turnaround attention, comparable sales rose 6.4%.

Here’s how the sporting goods store performed compared to Wall Street expectations in the first fiscal quarter, according to a survey of LSEG analysts.

• Earnings per share: $2.90 vs expected $2.92
• Revenues: 5.17 billion dollars, while the expectation was 5.09 billion dollars

The company’s shares fell nearly 5% in premarket trading.

During the quarter, Dick’s had net income of $319.82 million, or $3.54 per share, compared to $264.29 million, or $3.24 per share, a year ago. When items such as acquisition costs and lawsuits are taken into account, Dick earned $2.90 per share.

With the addition of Foot Locker to its business, sales rose nearly 63% to $5.17 billion, from $3.17 billion the previous year.

In an era when sports are at the center of culture, Dick’s has little trouble attracting customers. But maintaining profitability expectations proved more difficult.

Following its first-quarter results, Dick’s tightened its 2026 forecast for comparable sales growth for both Dick’s and Foot Locker. He now expects Dick’s business to grow between 2.5% and 4%, up from 2% to 4%, and Foot Locker predicts it will grow between 1.5% and 3%, up from 1% to 3% previously.

Meanwhile, Dick’s lowered its forecast for 2026 consolidated operating revenue and earnings. Consolidated operating income is now expected to range between $1.69 billion and $1.81 billion, down from its previous range of $1.71 billion to $1.83 billion.

Now in 2026, earnings per share are expected to range between $13.27 and $14.27, falling from $13.70 to $14.70. According to LSEG, it continues to expect adjusted earnings per share to range between $13.50 and $14.50, beating expectations at the top end of $14.32 per share.

According to LSEG, net sales are expected to be between $22.1 billion and $22.4 billion; This is roughly in line with expectations of $22.4 billion.

The company also raised its adjusted operating income forecast to a range of $1.71 billion to $1.83 billion, from $1.68 billion previously to $1.81 billion.

Since acquiring Foot Locker, Dick’s has sought to capitalize on its expanding store footprint and unique customer demographics while also taking on the tough work of closing underperforming stores, retooling assortments and changing store formats.

It had previously launched an 11-store pilot program called “Fast Break” that tested changes to products and how they appeared in stores; This is where Foot Locker sees most of its revenue. The pilot has been expanded to approximately 100 stores worldwide, where these stores are seeing double-digit comparable sales growth and significant product margin improvements.

The pilot will expand to 250 stores as back-to-school season begins, with additional additions planned ahead of the holiday shopping season.

As of the end of the quarter, Foot Locker’s total business, including Champs, WSS and Kids Foot Locker, had 2,483 stores worldwide.