Financial Data and Key Metrics Changes - The company reported a 5% comparable store sales increase, building on a 4.5% increase from the previous year, indicating strong performance despite tough comparisons [8] - Inventory grew by 7% in Q2, while sales grew by 5%, reflecting a healthy inventory position [23][24] - Gross margins increased by 30 basis points in Q2, following over 200 basis points of growth previously, showcasing effective margin management [27] Business Line Data and Key Metrics Changes - The company noted strong performance across all categories, particularly in footwear and hardlines, with diamond sports seeing significant launches [19] - Vertical brands have outpaced overall company growth, with margins 700 to 900 basis points higher than average [30] - The golf business has seen a resurgence, benefiting from increased participation during COVID, and is now the third largest department [39] 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 [21][22] - The upcoming World Cup in 2026 and the Olympics in 2028 are expected to boost consumer interest and sales in sports-related products [14][16] Company Strategy and Development Direction - The acquisition of Foot Locker is seen as a major opportunity for growth, with plans to enhance product offerings and store culture [9][11] - The company is focused on innovation and new product launches, which are driving consumer interest and sales [19][20] - The House of Sport and Fieldhouse concepts are part of the strategy to enhance the retail experience and drive market share [62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of the consumer, noting that there has been no trade down across income demographics [19][20] - The company anticipates continued strong performance in the second half of the year, with no expected deterioration in consumer health [65][66] - Management is closely monitoring inventory growth and pricing strategies in response to market conditions [70][71] Other Important Information - The company is investing in its DICK'S Media Network and Game Changer platform, which are expected to drive future growth and margin expansion [48][50] - The company plans to open 16 House of Sport locations this year, with a long-term goal of 75 to 100 locations by 2027 [62] Q&A Session Summary Question: What are the expectations for the environment in the second half? - Management expects the environment to remain the same, with no worse conditions anticipated [65][66] Question: How has pricing affected demand elasticity? - Management noted very small changes in pricing, with a surgical approach to adjustments and close monitoring of demand elasticity [68] Question: What is the expectation for inventory growth in the second half? - Management indicated a deceleration in inventory growth, following significant investments to address out-of-stock issues [70] Question: What are the expectations for margins regarding freight, wages, and materials? - Management stated that it is too early to determine, but they are monitoring the situation closely [71] Question: Will market share consolidation speed up or slow down? - Management believes that market share consolidation will speed up, potentially influenced by tariffs [73] Question: What has changed in the company's strategy post-pandemic? - Management highlighted a complete transformation in marketing, product offerings, and store concepts, leading to sustained growth and improved margins [75][82]

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]