Dick's Sporting Goods(DKS) - 2026 Q3 - Quarterly Results

Sales Performance - DICK'S Business reported a comparable sales growth of 5.7% in the third quarter, driven by increases in both average ticket and transactions [2]. - The company raised its full-year 2025 guidance for comparable sales growth to a range of 3.5% to 4.0%, up from the previous range of 2.0% to 3.5% [6]. - DICK'S Business achieved comparable sales growth of 5.7% for the 13 weeks ended November 1, 2025, compared to 4.3% for the same period in 2024 [21]. - Net sales for the 13 weeks ended November 1, 2025, were $4,167,773, a significant increase from $3,057,181 for the same period in 2024, representing a growth of 36.3% [34]. - For the 39 weeks ended November 1, 2025, net sales reached $10,989,066, up from $9,549,200 in 2024, marking an increase of 15.0% [36]. Financial Guidance - DICK'S Business earnings per diluted share guidance for 2025 was increased to a range of $14.25 to $14.55, up from $13.90 to $14.50 [6]. - DICK'S Business expects earnings per diluted share for full year 2025 to be between $14.25 and $14.55, based on approximately 81 million diluted shares outstanding [16]. - Net sales for DICK'S Business are projected to be between $13.95 billion and $14.0 billion, with comparable sales growth estimated at positive 3.5% to positive 4.0% [16]. Acquisitions and Expansion - The company completed the acquisition of Foot Locker for a total consideration of $2.5 billion, which included $2.1 billion in share consideration [12]. - DICK'S Sporting Goods opened 13 new House of Sport locations and 6 new DICK'S Field House locations during the third quarter [6]. - The company initiated a review of unproductive assets, expecting future pre-tax charges of $500 to $750 million related to the Foot Locker acquisition [14]. Financial Results - The company reported net sales of $4.168 billion for the third quarter, a 36.3% increase from $3.057 billion in the prior year [8]. - DICK'S Business net income for the third quarter was $226 million, a slight decrease of 1% compared to $228 million in the prior year [8]. - Total gross profit for DICK'S Sporting Goods for the 39 weeks ended November 1, 2025, was $3,682.9 million, up from $3,464.4 million in the same period last year [21]. - DICK'S Sporting Goods reported a business profit of $288.6 million for the 13 weeks ended November 1, 2025, compared to $289.5 million for the same period in 2024 [21]. - Net income for the 13 weeks ended November 1, 2025, was $75,212, down from $227,813 in the same period last year, reflecting a decline of 66.9% [34]. - The company reported an income from operations of $93,097 for Q3 2025, a decrease of 67.5% from $286,044 in Q3 2024 [34]. Expenses and Liabilities - Selling, general and administrative expenses increased to $1,118,600, representing 26.84% of net sales, compared to 25.86% in the prior year [34]. - Total current liabilities rose to $4.68 billion in November 2025, compared to $3.22 billion in November 2024, marking an increase of 45.4% [38]. - Long-term debt and financing lease obligations increased to $1.90 billion in November 2025, up from $1.48 billion in November 2024, reflecting a rise of 28.2% [38]. Cash Flow and Capital Expenditures - Cash and cash equivalents decreased by 44% to $821 million compared to $1.459 billion in the prior year [9]. - The company experienced a net cash provided by operating activities of $487.3 million, down from $680.3 million in the previous year, a decrease of 28.4% [40]. - Capital expenditures for DICK'S Business are anticipated to be approximately $1.2 billion on a gross basis and $1.0 billion on a net basis [16]. - Capital expenditures for the 39 weeks ended November 1, 2025, were $793.3 million, an increase of 40.3% compared to $565.6 million in the prior year [40]. Tax and Margins - The effective tax rate for consolidated Q4 2025 is projected to be approximately 29% [18]. - Gross profit margin decreased to 33.13% in Q3 2025 from 35.77% in Q3 2024, indicating rising costs in goods sold [34]. - The company reported a gross profit margin of 33.13% for the 13 weeks ended November 1, 2025 [42]. Non-GAAP Measures - The company reported a non-GAAP net income of $180.6 million for the 13 weeks ended November 1, 2025, translating to diluted earnings per share of $2.07 [42]. - The non-GAAP net income for the same period was $810,062, with earnings per diluted share at $9.74 [43]. - The company’s provision for income taxes for non-GAAP adjustments was calculated at 26%, reflecting the consolidated blended tax rate [45].