Financial Data and Key Metrics Changes - The company reported a consolidated sales increase of 5% to $3.65 billion for Q2 2025, with comparable sales (comps) also increasing by 5% [16][11] - Gross profit for Q2 was $1.35 billion, representing 37.06% of net sales, with an increase of 33 basis points from the previous year [17] - Non-GAAP earnings per diluted share were $4.38, slightly up from $4.37 in the previous year [19] Business Line Data and Key Metrics Changes - The company is focusing on three growth areas: repositioning real estate and store portfolio, driving growth in key categories, and expanding its e-commerce business [12][13] - The company opened one additional House of Sport location in Q2 and plans to open 13 more in Q3, aiming for a total of approximately 35 by year-end [12] - E-commerce continues to grow faster than the overall company, driven by a strong product pipeline and app engagement [13] Market Data and Key Metrics Changes - The company is gaining market share from online-only and omni-channel retailers, with a two-year comp stack of 9.5% and a three-year comp stack of 11.5% [16] - The company expects full-year comp sales growth in the range of 2% to 3.5%, up from a prior expectation of 1% to 3% [21] Company Strategy and Development Direction - The company is enthusiastic about the strategic benefits of the pending acquisition of Foot Locker, which is expected to close on September 8 [8] - The acquisition aims to create a global leader in the sports retail industry, enhancing partnerships with leading sports brands and expanding the total addressable market [8] - The company is committed to investing in stores and marketing to revitalize the Foot Locker business post-acquisition [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's long-term strategies and the strength of its operating model, despite a complex macroeconomic environment [10][21] - The company is navigating the tariff environment effectively, with minimal impact on Q2 and a cautious outlook for the back half of the year [36][109] - Management raised full-year guidance based on strong Q2 performance and ongoing confidence in business execution [10][21] Other Important Information - The company ended Q2 with approximately $1.2 billion in cash and cash equivalents, with no borrowings on its $2 billion unsecured credit facility [19] - The company plans to invest approximately $1 billion in net capital expenditures for the full year [23] Q&A Session Summary Question: Update on Foot Locker acquisition and revitalization plans - Management sees a tremendous opportunity with Foot Locker and plans to invest in stores and marketing to turn the business around [30][31] Question: Impact of tariffs on demand and pricing - Management reported strong performance despite sporadic price increases and is confident in navigating the tariff environment [36] Question: Consumer behavior and category performance - Management noted broad-based growth across key segments, with no signs of consumer slowdown [40][41] Question: Gross margin expectations - Management expects gross margin to expand, balancing various factors including tariffs and strategic investments [68] Question: Accretion from Foot Locker deal - Management remains confident that the acquisition will be accretive, with ongoing evaluations post-transaction [72][87] Question: Game Changer performance - Game Changer continues to perform well, with significant user growth and integration with DICK'S Media Network [78] Question: Athletic footwear pricing and consumer absorption - Management indicated that selective price increases have not negatively impacted consumer demand [107] Question: Traffic dynamics between store formats - Management expressed enthusiasm for the performance of House of Sport and Fieldhouse stores, focusing on overall performance rather than traffic alone [115]

Financial Data and Key Metrics Changes - The company reported a consolidated sales increase of 5% to $3.65 billion for Q2 2025, with comparable sales (comps) also increasing by 5% [16][11] - Gross profit for Q2 was $1.35 billion, representing 37.06% of net sales, an increase of 33 basis points from the previous year [17] - Non-GAAP earnings per diluted share were $4.38, slightly up from $4.37 in the previous year [19] - The company ended Q2 with approximately $1.2 billion in cash and cash equivalents, with no borrowings on its $2 billion unsecured credit facility [19] Business Line Data and Key Metrics Changes - The company opened one additional House of Sport location in Q2 and plans to open 13 more in Q3, marking the highest number of openings in a single quarter [12] - The e-commerce business continues to grow faster than the overall company, driven by a strong product pipeline and app engagement [13][14] Market Data and Key Metrics Changes - The company continues to gain market share from online-only and omni-channel retailers, with a two-year comp stack of 9.5% and a three-year comp stack of 11.5% [16] - The average ticket increased by 4.1%, while transactions rose by 0.9% in Q2 [16] Company Strategy and Development Direction - The company is focused on four strategic pillars: differentiated product assortment, omni-channel athlete experience, teammate experience, and deep engagement with the Dick's brand [10] - The pending acquisition of Foot Locker is expected to create a global leader in the sports retail industry, enhancing partnerships with leading sports brands and expanding the total addressable market [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's resilience and the effectiveness of long-term strategies, raising full-year comp sales growth expectations to 2% to 3.5% [21] - The company is navigating a complex macroeconomic environment, including tariff impacts, while maintaining strong consumer demand and sales momentum [38][21] Other Important Information - The company anticipates closing the Foot Locker acquisition on September 8, 2025, and is enthusiastic about the strategic benefits it will bring [7] - The company is investing in digital and in-store initiatives to position itself for long-term growth, with a focus on enhancing the athlete experience [18][21] Q&A Session Summary Question: Update on Foot Locker acquisition and revitalization plans - Management sees a tremendous opportunity with Foot Locker and plans to invest in stores and marketing to turn the business around, with more details expected in the Q3 call [34][33] Question: Impact of tariffs on demand and pricing - Management reported strong performance despite tariff impacts, with surgical price increases and no significant demand slowdown observed [38][36] Question: Consumer behavior and category performance - Management noted broad-based growth across all key segments, with no signs of consumer slowdown, and highlighted the importance of innovation in driving sales [41][42] Question: Gross margin expectations - Management expects gross margin to expand for the full year, driven by product assortment quality and strategic investments, despite balancing various economic factors [73][72] Question: Game Changer performance - Game Changer continues to perform well with 7.4 million unique active users in Q2, and the integration with Dick's Media Network is enhancing personalization and engagement [80][81] Question: Private brands and tariff impacts - Management did not provide specific details on private brand performance but acknowledged ongoing discussions with brand partners regarding pricing strategies in light of tariffs [122]

Financial Data and Key Metrics Changes - The company reported a consolidated sales increase of 5% to $3.65 billion for Q2 2025, with comparable store sales (comps) also increasing by 5% [16][11] - Gross profit for Q2 was $1.35 billion, representing 37.06% of net sales, an increase of 33 basis points from the previous year [17] - Non-GAAP earnings per diluted share were $4.38, slightly up from $4.37 in the previous year [19] - The company raised its full-year comp sales growth expectation to a range of 2% to 3.5%, up from a prior expectation of 1% to 3% [21] Business Line Data and Key Metrics Changes - The company opened one additional House of Sport location in Q2 and plans to open 13 more in Q3, marking the highest number of openings in a single quarter [12] - The e-commerce business continues to grow faster than the overall company, driven by a strong product pipeline and app engagement [13][14] Market Data and Key Metrics Changes - The company continues to gain market share from online-only and omni-channel retailers, with a two-year comp stack of 9.5% and a three-year comp stack of 11.5% [16] - There was broad-based strength across key categories, including footwear, apparel, team sports, and golf, with no signs of consumer slowdown [39] Company Strategy and Development Direction - The company is focused on strategic investments in digital, in-store, and marketing to position itself for long-term growth [21] - The pending acquisition of Foot Locker is expected to create a global leader in the sports retail industry, enhancing partnerships with leading sports brands and expanding the total addressable market [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the complex macroeconomic environment, including tariff impacts, while maintaining strong sales momentum [36][21] - The company is optimistic about the future growth potential of both DICK'S and Golf Galaxy businesses, as well as the opportunities presented by the Foot Locker acquisition [14] Other Important Information - The company ended Q2 with approximately $1.2 billion in cash and cash equivalents, with no borrowings on its $2 billion unsecured credit facility [19] - The company expects to incur preopening expenses in the range of $65 million to $75 million for the full year, primarily in Q3 [22] Q&A Session Summary Question: Update on Foot Locker acquisition and revitalization plans - Management sees a tremendous opportunity with Foot Locker and plans to invest in stores and marketing to revitalize the business [32][33] Question: Impact of tariffs on demand and pricing - Management reported strong performance despite sporadic price increases, indicating that consumers are responding well [36] Question: Consumer behavior and potential slowdown - Management noted no signs of consumer slowdown, with growth across all key segments [39] Question: Gross margin expectations - Management expects gross margin to expand for the full year, balancing various factors including tariffs and strategic investments [70][71] Question: Game Changer performance - Game Changer continues to perform well with 7.4 million unique active users in Q2, indicating strong growth [78] Question: Private brands performance and tariff impacts - Management did not provide specific details on private brands but acknowledged the impact of tariffs on cost of goods sold [122]