US' Dick's Q3 sales jump after Foot Locker deal, but net income falls

Dick’s Sporting Goods has reported a strong rise in third-quarter (Q3) net sales to $4.17 billion for the quarter ended November 01, 2025. The figure represents a 36.3 per cent year-on-year increase, reflecting the consolidation of the newly acquired Foot Locker business.

However, consolidated net income dropped 67 per cent to $75 million, with earnings per diluted share falling to $0.86 from $2.75 as a result of acquisition-related effects and a higher tax rate.

On a non-GAAP basis, consolidated net income eased 21 per cent to $181 million, while Dick’s Business alone posted stable earnings of $226 million and EPS of $2.78, up one per cent. Comparable sales for the standalone Dick’s Business rose 5.7 per cent, driven by steady demand across key banners including Golf Galaxy and Public Lands.

Year-to-date consolidated revenue reached $10.99 billion, up 15.1 per cent, although net income fell 17 per cent to $721 million. Inventory rose 51 per cent to $5.64 billion following the Foot Locker acquisition, and long-term debt increased 28 per cent to $1.9 billion, the company said in a financial release.

"We are incredibly excited about our acquisition of Foot Locker, which marks a bold and transformative step that expands our reach and creates a global platform at the intersection of sport and culture. Together, we are building a stronger and more dynamic company for the long term," said Ed Stack, executive chairman.

The company said it has begun clearing unproductive inventories and closing underperforming stores at Foot Locker, with expected pre-tax charges of $500 million to $750 million.

For fiscal 2025, Dick’s Business (excluding Foot Locker) expects EPS between $14.25 and $14.55 and comparable sales growth of 3.5 to 4 per cent.

"The effectiveness of our long-term strategies and the best-in-class execution by our team are driving outstanding results for our Dick's Business. Reflecting these strong results and our continued confidence, we are again raising our full-year 2025 outlook for the Dick's Business," Lauren Hobart, president and chief executive office added.

ALCHEMPro News Desk (HU)