Dick’s Sporting Goods announced on Wednesday that it is reaffirming its full-year guidance, factoring in the impact of current tariffs. The company anticipates earnings per share (EPS) to range between $13.80 and $14.40 for fiscal 2025, aligning with analysts’ expectations of $14.29. Revenue is projected to be between $13.6 billion and $13.9 billion, consistent with the anticipated $13.9 billion.
CEO Lauren Hobart emphasized the company’s strong start to the year and robust operational strategies, reflecting confidence despite the fluctuating macroeconomic landscape. In the first fiscal quarter, Dick’s reported adjusted EPS of $3.37 and revenue of $3.17 billion, surpassing forecasts of $3.13 billion. The net income for the quarter ending May 3 was $264 million, down from $275 million the previous year.
Recently, Dick’s announced plans to acquire rival Foot Locker for $2.4 billion, aiming to enter international markets and attract sneaker-focused customers. The acquisition has elicited mixed reactions; while it offers growth opportunities, Foot Locker has faced challenges, raising concerns about its viability. Initially, Foot Locker’s shares surged over 80% post-announcement, while Dick’s shares fell approximately 15%.
The acquisition is slated to finalize in the second half of fiscal 2025, with Dick’s outlook not currently reflecting associated costs or results. Nonetheless, Dick’s expects the acquisition to enhance earnings and yield $100 million to $125 million in cost synergies in the year following the close. Overall, the company appears optimistic about its future performance and strategic direction amidst uncertainties in the market.
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