Dick's Sporting Goods(DKS) - 2026 Q3 - Earnings Call Presentation

Dick's Sporting Goods Business Performance and Strategy - DICK'S Business is a leading U S sports retailer with growth potential, holding approximately 9% market share within a ~$140 billion total addressable market[14] - The company achieved strong FY24 results, including a 52% increase in comparable sales and net sales of $1344 billion, a 3590% non-GAAP gross margin (+89 bps year-over-year), a $152 billion non-GAAP EBT (+83% year-over-year), and a $1405 non-GAAP EPS (+88% year-over-year)[20] - DICK'S Business is focused on three growth areas: driving growth in key categories, accelerating eCommerce, and repositioning real estate and store portfolio[32] - The company is expanding its House of Sport locations, aiming for 75 to 100 stores by the end of FY27, with each location generating approximately $35 million in Y1 Omni sales and ~$7 million in Y1 4-Wall Omni EBITDA[37, 45] - DICK'S Business is also growing its Golf Galaxy footprint, including Performance Centers, with 112 Golf Galaxy locations, including 32 Performance Centers as of FY25[47, 53] Acquisition of Foot Locker and Future Outlook - DICK'S Sporting Goods acquired Foot Locker, Inc to create a global platform within the growing sports retail industry with a ~$300 billion total addressable market and ~65% market share[7, 16] - Foot Locker, Inc has approximately 23K global stores across North America, Europe, and Asia Pacific, with FY24 revenue of $8 billion and adjusted EBIT of $193 million[113] - The company expects to achieve $100 million to $125 million in cost synergies from the Foot Locker acquisition over the medium-term and expects the acquisition to be accretive to EPS in FY26, excluding one-time costs[117] - DICK'S Business Q3 2025 comparable sales grew 57%, and the company is raising its full-year 2025 outlook for the DICK'S Business, expecting net sales of $1395 billion to $140 billion and diluted EPS of $1425 to $1455[133, 135] Capital Allocation and Shareholder Returns - The company has returned approximately $22 billion to shareholders over the past three years, representing approximately 110% of free cash flow, including ~$13 billion in share repurchases and ~$880 million in dividends[126, 127] - DICK'S Sporting Goods announced authorization of a new five-year share repurchase program of up to $3 billion[130]