Dick’s Sporting Goods forecasts growth following Foot Locker acquisition

US-based sports retailer Dick’s Sporting Goods has reported record-setting sales for its fourth quarter and full year ending January 31, 2026. The company, which acquired Foot Locker in September 2025, expects continued expansion in sales and profitability through fiscal 2026 as it integrates its new footwear banners.

For the full year 2025, Dick’s reported consolidated net sales of 17.22 billion dollars, a 28.1 percent increase compared to the previous year. The core Dick’s business, which includes Dick’s Sporting Goods, Golf Galaxy, Public Lands, and Going Going Gone!, delivered a 4.5 percent increase in like-for-like (LFL) sales. This growth was driven by an increase in both average ticket value and total transactions.

Performance and strategic initiatives

The fourth quarter saw LFL sales growth of 3.1 percent for the Dick’s business. On a non-GAAP basis, earnings per diluted share (EPS) for the Dick’s business reached 14.58 dollars, compared to 14.05 dollars in the prior year. President and chief executive officer Lauren Hobart noted that the company is "perfectly positioned at the intersection of sport and culture."

During the investor call, Hobart highlighted that growth is occurring across all categories, bolstered by strategic partners such as Nike and Adidas. The retailer is seeing significant momentum in running footwear and team sports. Notably, Dick’s has become the first US wholesale partner for Gymshark and is expanding its collectibles business through a partnership with Fanatics, which will include dedicated shops in all House of Sport locations.

Integration of Foot Locker business

Since acquiring Foot Locker for 2.5 billion dollars on September 8, 2025, Dick’s has initiated a ‘clean out of the garage’ strategy to optimize the footwear retailer’s operations. Executive chairman Edward Stack explained that a pilot program involving 11 stores focused on a ‘Fast Break’ initiative, which simplified merchandising by removing approximately 30 percent of unproductive inventory choices.

Following strong results from the pilot, the company plans to scale this concept to approximately 250 stores across the US and Europe by the autumn/winter 2026 (AW26) back-to-school season. Stack expressed high confidence in the game plan, stating that the new layout allows consumers to clearly identify ‘high heat’ products from brands like New Balance and Nike.

Outlook for fiscal 2026

Dick’s has provided a consolidated outlook for the full year 2026, forecasting net sales between 22.1 billion dollars and 22.4 billion dollars. The company expects consolidated operating income to range from 1.71 billion dollars to 1.83 billion dollars. Specific segment expectations include:

Dick’s business: LFL sales growth of 2 percent to 4 percent with a segment profit margin of 11 percent to 11.2 percent.

Foot Locker business: Proforma LFL sales growth of 1 percent to 3 percent with a segment profit margin of 1.3 percent to 1.9 percent.

The retailer plans to open approximately 14 House of Sport locations and 22 Dick’s Field House locations in 2026. Furthermore, the board of directors authorized a 3 percent increase in the annualized dividend to 5 dollars per share.

Executive vice president and chief financial officer Navdeep Gupta noted that LFL sales are expected to be slightly higher in the first half of the year due to the benefit of the World Cup. However, operating margins may see a decline during the first half as the company continues to invest in the business, with synergy benefits from the Foot Locker acquisition expected to be more weighted toward the second half.