Foot Locker Acquisition Impact Intensifies.. U.S. Sports Retail Stocks Surge Over 60% in Q1 Revenue

DICK’S Sporting Goods, Inc. (DKS) reported that consolidated net sales for the first quarter of fiscal 2026 reached $5.17 billion, a 62.7% increase year-over-year. Reflecting the impact of its acquisition of Foot Locker, comparable-store sales in its legacy Dick’s business rose 6%, while Foot Locker achieved positive pro forma comparable-store growth and returned to profitability. Diluted earnings per share were $3.54 on a GAAP basis and $2.90 on a non-GAAP basis.

For full-year 2026, the company reiterated net sales guidance of $22.1 billion to $22.4 billion. Incorporating acquisition and integration costs, it modestly lowered its GAAP operating-income and EPS outlook, but raised the low ends of its non-GAAP operating-income forecast and its same-store sales growth targets for both Dick’s and Foot Locker. To date, approximately $486.5 million of pre-tax charges have been recorded in connection with the rationalization of non-productive Foot Locker assets. As of this quarter, the combined store base for Dick’s and Foot Locker stands at 3,115. The board also approved a quarterly dividend of $1.25 per share, payable on June 26.

Meanwhile, CEO Lauren Hobart exercised options on roughly 20,000 shares on May 28, selling a portion to realize approximately $4.53 million in cash. She continues to hold about 320,000 shares, with a stake valued at around $69.9 million.

Although Dick’s modestly trimmed its full-year profit outlook—citing margin pressures from Foot Locker store remodels and inventory adjustments—it maintained or raised its revenue and same-store sales targets. The announcement prompted a brief pullback in the share price. Under its “Fast Break” turnaround program for Foot Locker, roughly 100 remodeled stores delivered double-digit comparable-store sales gains and gross-margin improvement in the first quarter. The company plans to expand this program to approximately 250 stores worldwide by the back-to-school season.

DICK’s Sporting Goods is one of the largest sports and outdoor-equipment retailers in the U.S., operating both brick-and-mortar and e-commerce channels. In 2025, it bolstered its footwear and sneaker offering by acquiring Foot Locker for about $2.4 billion. Despite a high-interest-rate environment and concerns over consumer spending, demand remains strong for premium sneakers, team-sports gear and outdoor-activity products, prompting ongoing restructuring and consolidation among major chains and online platforms.