Dick's Sporting Goods (DKS) reported fiscal first-quarter results above market expectations on Wednesday, while the athletic goods retailer affirmed its full-year outlook.
The company's adjusted earnings came in at $2.90 a share for the quarter ended May 2, down from $3.37 the year before, but topped the FactSet-polled consensus of $2.89. Sales surged 63% to $5.16 billion, ahead of the Street's view for $5.07 billion. Foot Locker contributed $1.79 billion in revenue.
Foot Locker returned to positive comparable sales and profitability, Dick's Executive Chairman Ed Stack said in a statement.
For fiscal 2026, Dick's continues to project adjusted EPS between $13.50 and $14.50 on sales of $22.1 billion to $22.4 billion. The Street is looking for non-GAAP EPS of $14.30 and sales of $22.34 billion.
"Our guidance continues to reflect the strength of the Dick's business and the turnaround efforts underway at Foot Locker, all within the context of the dynamic geopolitical and macroeconomic environment," Chief Financial Officer Navdeep Gupta said during an earnings call, according to a FactSet transcript.
Shares of the company were down 2.4% in Wednesday trade.
Comparable sales for the Dick's business climbed 6% in the first quarter, surpassing the 3% growth rate modeled by the market. The result was primarily driven by average ticket gains, Stack told analysts.
On a pro-forma basis, consolidated same-store sales rose 4.1%.
For the ongoing fiscal year, comparable sales for the Dick's business is expected to rise by 2.5% to 4%, reflecting a higher low end. The market's view is for same-store sales growth of 3.1%.
"We continue to expect higher comps in the first half, driven in large part by the timing of the (FIFA) World Cup," Gupta said on the call.
