DICK’S Sporting Goods (DKS) Q1 2027 earnings summary

Executive summary

• Q1 2026 consolidated net sales rose 62.7% to $5.16B, driven by the Foot Locker acquisition and 6% comp growth in DICK'S Business; Foot Locker returned to positive comps, with Fast Break stores delivering double-digit comps.

• Net income increased to $319.8M ($3.54 per diluted share), including $131.2M net of tax from litigation and settlement income and $73.5M net of tax in acquisition-related charges.

• Strategic focus on omni-channel growth, real estate innovation, and differentiated product offerings, with strong engagement from younger athletes and no signs of consumer trade-down.

• Operated 3,115–3,195 store locations at quarter-end across both business segments.

• Raised the low end of full-year comp sales guidance for both DICK'S (2.5%-4%) and Foot Locker (1.5%-3%).

Financial highlights

• Q1 2026 consolidated non-GAAP gross profit was $1.73B (33.42% of net sales), with gross margin at 32.6% (down from 36.7% YoY) due to Foot Locker mix and inventory write-downs.

• Operating income was $450.7M (8.7% of sales), up from $366.1M YoY; non-GAAP operating income was $378.4M (7.33% of net sales).

• DICK'S Business operating income was $361M (10.7% of net sales); Foot Locker operating income was $17.5M (~1% of net sales).

• Non-GAAP EPS was $2.90, down from $3.37 YoY; GAAP EPS was $3.54, up from $3.24 YoY, reflecting share dilution from Foot Locker acquisition.

• Ended quarter with $1B in cash, no borrowings on $2B credit facility, and inventory at $5.42B, up 52% due to Foot Locker.

Outlook and guidance

• Full-year 2026 consolidated net sales expected at $22.1B–$22.4B; diluted EPS guidance of $13.27–$14.27 (GAAP) and $13.50–$14.50 (non-GAAP), with 90.5M average diluted shares.

• DICK'S comp sales guidance raised to 2.5%-4%; Foot Locker to 1.5%-3%; DICK'S operating margin at high end now expected at 11.4%.

• Foot Locker operating income guidance raised to $110M–$150M, with performance weighted to the second half.

• Effective tax rate for the year now expected at 27%–28.3%, higher than prior outlook.

• Net capital expenditures expected at $1.4B, focused on store growth, remodels, and technology.