DICK’S Sporting Goods (DKS) FY 2025 Conference September 04, 2025 11:40 AM ET Company ParticipantsKate McShane - Managing DirectorEdward Stack - Executive ChairmanLauren Hobart - Director, President & CEONavdeep Gupta - Executive VP & CFOKate McShaneGood morning. It's my pleasure to introduce DICK'S Sporting Goods and to moderate our fireside chat. Today, we have with us Ed Stack, executive chairman of DICK'S Sporting Goods. We have Lauren Lauren Hobart, president and chief executive. Lauren joined DICK'S i ...

Financial Data and Key Metrics Changes - The company reported a 5% comparable sales growth in Q2, building on a 4.5% growth from the previous year, indicating strong performance despite tough comparisons [6][16] - Inventory grew by 7% in Q2, while sales grew by 5%, reflecting a healthy inventory position [20][21] - Gross margins increased by 30 basis points in Q2, following a previous increase of over 200 basis points, showcasing effective inventory management and product differentiation [24][43] Business Line Data and Key Metrics Changes - The company noted strong performance across all product categories, including hardlines and softlines, with diamond sports experiencing significant launches [16] - Vertical brands such as CALIA and DSG have outpaced overall company growth, with margins 700 to 900 basis points higher than average [28] - The golf business has seen a resurgence, benefiting from increased participation during the pandemic, and is now the third largest department [38] Market Data and Key Metrics Changes - The company holds a 9% market share in the U.S. sporting goods retail sector, indicating significant room for growth [18] - The upcoming World Cup in 2026 and the Olympics in 2028 are expected to boost consumer interest and sales in sporting goods [12][14] Company Strategy and Development Direction - The acquisition of Foot Locker is seen as a strategic opportunity to enhance the company's retail presence and product offerings [7][9] - The company is focused on expanding its House of Sport and Fieldhouse concepts, with plans to open 16 House of Sport locations this year and maintain a similar number in the following year [59][60] - The company is investing in its DICK'S Media Network and Game Changer platform to leverage customer data and enhance marketing capabilities [46][49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of the consumer, with no anticipated decline in performance for the second half of the year [62] - The company is closely monitoring inventory growth and pricing strategies in response to market conditions and tariffs [64] - Management believes market share consolidation in the retail sector will accelerate, influenced by external factors such as tariffs [67] Other Important Information - The company has successfully transitioned away from the gun business, which previously represented a significant portion of sales, and has since captured more than 100% of the expected sales in other categories [70][72] - The company is committed to continuous innovation and adapting its retail strategies to meet changing consumer preferences [79][80] Q&A Session Summary Question: Expectations for the environment in the second half - Management expects no worse conditions than the first half, indicating stability in consumer health [62] Question: Pricing elasticity and inventory expectations - The company has implemented selective pricing changes with minimal elasticity response anticipated, and inventory growth is expected to decelerate [63][64] Question: Margins outlook regarding freight, wages, and materials - Management is cautious about future margin impacts but remains optimistic about their capabilities and employee engagement [65][66] Question: Competitive landscape and market share consolidation - Management believes that market share consolidation will speed up, influenced by external factors such as tariffs [67]