DICK'S Sporting Cuts FY26 Earnings View, Backs Adj. EPS, Sales Forecast After Q1 Growth; Stock Down

(RTTNews) - Shares of of DICK'S Sporting Goods Inc. were losing around 3 percent in the early morning trading on the NYSE after the sports retailer on Wednesday lowered fiscal 2026 outlook for earnings, despite higher first-quarter results. Further, the firm maintained forecast for annual adjusted earnings per share and net sales, and raised the expectations for comparable sales growth for the segments.

Lauren Hobart, President and Chief Executive Officer, stated, "In Q1, we delivered comp sales growth of 6 percent in the DICK'S Business, with growth in average ticket and transactions, and broad-based strength across footwear, apparel, and hardlines. These strong comps were on top of a 4.5 percent increase last year and a 5.3 percent increase in 2024, as we continued to gain market share. Given our continued confidence in the DICK'S Business, we are raising our full-year expectations for comp sales growth and profitability."

For fiscal 2026, DICK'S Sporting now projects earnings in a range of $13.27 to $14.27 per share, compared to $13.70 to $14.70 expected previously.

Further, the firm continues to expect adjusted earnings in a range of $13.50 to $14.50 per share on net sales between $22.1 billion and $22.4 billion.

Meanwhile, the company trimmed consolidated operating income guidance to a range of $1.69 billion to $1.81 billion from previous view of $1.71 billion to $1.83 billion.

The firm raised adjusted operating income guidance to a range of $1.71 billion to 1.83 billion from previous view of $1.68 billion to $1.81 billion.

In addition, the company raised the low end of full year 2026 guidance for comparable sales growth for both the DICK'S and Foot Locker Businesses.

DICK'S Business now expects comparable sales growth of 2.5 percent to 4.0 percent, up from 2.0 percent to 4.0 percent expected previously. Foot Locker Business now expects comparable sales growth of 1.5 percent to 3.0 percent, up from previous view of 1.0 percent to 3.0 percent.

Further, the company announced that on Tuesday, its Board of Directors declared a quarterly dividend of $1.25 per share, payable in cash on June 26, to stockholders of record at the close of business on June 12.

In the first quarter, Dicks Sporting Goods' bottom line totaled $319.82 million, higher than $264.29 million a year ago. Earnings per share increased 9 percent to $3.54 from $3.24 last year.

Adjusted earnings were $262.18 million or $2.90 per share for the period, compared to $274.56 million or $3.37 per share a year ago.

The company's net sales surged 62.7 percent to $5.165 billion from $3.175 billion last year, mainly driven by the acquisition of Foot Locker, which added net sales of $1.79 billion.

DICK'S Sporting Goods' net sales were $3.38 billion.

Proforma consolidated comparable sales increased 4.1 percent, on top of a 1.7 percent increase last year.

DICK'S Sporting Goods comparable sales grew 6.0 percent, while Proforma Foot Locker comparable sales edged up 0.6 percent.

On the NYSE, DKS is currently trading at $227.93, down $6.21 or 2.65 percent.

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