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DICK'S SPORTING GOODS, INC. (DKS)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 FY2025 results and the earnings call are scheduled for November 25, 2025; the 8‑K 2.02 and full transcript are not yet available as of Nov 20, 2025. We will update this recap immediately upon release .
  • Into Q3, DICK’S raised FY2025 guidance after Q2: comps to +2.0% to +3.5% (from +1.0% to +3.0%), EPS to $13.90–$14.50 (from $13.80–$14.40), and net sales to $13.75–$13.95B, citing momentum and tariff mitigation plans .
  • Q2 delivered 5.0% comps, $3.65B net sales, non‑GAAP EPS $4.38 (GAAP $4.71) and 33 bps gross margin expansion; management highlighted broad‑based category strength and growing contributions from GameChanger and DICK’S Media Network .
  • Key Q3 focus areas: back‑to‑school sell‑through and holiday setup, gross margin trajectory vs. prior 75 bps full‑year expansion narrative (updated to “up” YoY), SG&A deleverage from accelerated openings (13 House of Sport, 6 Field House in Q3), and initial integration posture after Foot Locker deal close on Sept 8, 2025 .

What Went Well and What Went Wrong

What Went Well

  • “Momentum continues to build”: Q2 comps +5% with growth in average ticket and transactions; gross margin expanded 33 bps YoY; non‑GAAP EPS $4.38 vs. $4.37 LY .
  • Strategic growth engines performing: e‑commerce outgrew the company; House of Sport and Field House expansion on track; GameChanger unique active users 7.4M in Q2 with ~50% revenue growth pace YoY .
  • Guidance raised despite tariff headwinds, supported by differentiated assortment, category breadth (footwear, apparel, team sports, golf), and market share gains vs online-only and omnichannel peers .

What Went Wrong

  • SG&A deleverage: non‑GAAP SG&A up ~9.9% in Q2 and deleveraged 105 bps Y/Y due to strategic investments (digital, stores, marketing) .
  • Gross margin messaging: earlier full‑year narrative of ~+75 bps expansion shifted to “up” for the year; investors probed the change amid dynamic tariff and promo landscape .
  • Tariffs: management noted minimal Q2 impact, with small back‑half impact contemplated; surgical price actions underway with brand partners to mitigate cost pressure .

Financial Results

Note: Q3 FY2025 results will be inserted upon release. Below shows trajectory through Q2 and prior-year Q3 for context.

MetricQ3 2024 (FY2025 last year)Q1 2025 (FY2025)Q2 2025 (FY2025)
Net Sales ($B)$3.06 $3.175 $3.647
Comparable Sales (%)+4.2% +4.5% +5.0%
Gross Margin (%)35.77% 36.70% 37.06%
GAAP Diluted EPS ($)$2.75 $3.24 $4.71
Non‑GAAP Diluted EPS ($)n/a$3.37 $4.38

KPIs and margin detail (latest reported):

  • Q2 merchandise margin +18 bps; gross margin +33 bps YoY, driven by assortment mix, occupancy leverage, and early contributions from GameChanger and DICK’S Media Network .
  • Transactions +0.9% and average ticket +4.1% in Q2; two‑ and three‑year comp stacks +9.5% and +11.5% respectively .
  • E‑commerce grew faster than total company in Q2; app‑driven launch culture noted across categories .

Segment breakdown: The company does not report by operating segments; management commentary cites broad‑based growth across footwear, apparel, team sports, and golf .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Earnings per Diluted Share (non‑GAAP)FY2025$13.80–$14.40 $13.90–$14.50 Raised
Net SalesFY2025$13.6B–$13.9B $13.75B–$13.95B Raised
Comparable SalesFY2025+1.0% to +3.0% +2.0% to +3.5% Raised
Capital Expenditures (Gross)FY2025~ $1.2B ~ $1.2B Maintained
Capital Expenditures (Net)FY2025~ $1.0B ~ $1.0B Maintained
Operating Margin (midpoint)FY2025~11.1% ~11.1%; ~+10 bps at high end Maintained
Effective Tax Rate AssumptionFY2025~24% ~25% Raised

Notes: Outlook excludes acquisition-related costs/investment gains and results from the Foot Locker acquisition .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2 FY2025)Current Period (Q3 FY2025)Trend
Tariffs/MacroMinimal Q1 impact; FY guide included known tariffs; price actions surgical; gross margin +~75 bps narrative at Q1 . Q2: minimal impact; back‑half modest impact contemplated; GM still expected up YoY .To be updated post‑call (11/25).Monitor gross margin language and pricing cadence.
Category performanceBroad‑based growth: footwear, apparel, team sports, golf; strong launch pipeline .To be updated post‑call (11/25).Expect back‑to‑school reads.
Real estate formatsHouse of Sport/Field House ramp; H2 openings concentrated in Q3; pre‑opening costs heavier in Q3 .To be updated post‑call (11/25).One‑time opex bulge in Q3.
Digital/DMN/GameChangerE‑com outgrew company; DMN margin tailwind; GameChanger users 7.4M in Q2, ~50% rev growth pace .To be updated post‑call (11/25).Structural margin support.
Foot Locker transactionClosed Sep 8; $100–$125M cost synergies medium term; accretive FY2026; new leadership named .To be updated post‑call (11/25).Integration milestones and synergy timing.

Management Commentary

  • “Our momentum continues to build… We remain very enthusiastic about the strategic benefits from the Foot Locker acquisition.” — Ed Stack, Executive Chairman .
  • “Our Q2 comps increased 5.0%, with growth in average ticket and transactions… We are raising our full year 2025 outlook.” — Lauren Hobart, CEO .
  • “Gross margin expanded 33 bps; merch margin +18 bps… early benefits from GameChanger and DICK’S Media Network.” — Navdeep Gupta, CFO .

Q&A Highlights

  • Gross margin and guidance cadence: Management shifted from explicit +75 bps to “up” for the year, balancing tariffs, inventory vibrancy, and promo dynamics; operating margin still ~11.1% midpoint, ~+10 bps at high end .
  • Tariffs: Minimal Q2 impact; modest back‑half impact contemplated; selective pricing with brand partners; consumer response remained healthy .
  • Foot Locker accretion and synergies: Accretive in FY2026 with $100–$125M medium‑term cost synergies; accretion level depends on consideration mix; more details planned after close (now closed) .

Estimates Context

  • S&P Global consensus for Q3 FY2025 could not be retrieved at this time due to a temporary data limit. Values unavailable from S&P Global currently; we will update this section with S&P Global consensus EPS, revenue, and estimate counts once accessible.
  • Media preview (for context only): third‑party preview articles flagged EPS consensus around $2.70 ahead of Q3 results; this is not from S&P Global and is included here solely as external context .

Key Takeaways for Investors

  • Momentum into Q3: Comp growth, merchandise margin expansion, and category breadth set a constructive backdrop for back‑to‑school and holiday; watch for confirmation in Q3 print and holiday commentary .
  • Margin watch: Expectation remains for full‑year gross margin expansion despite tariffs; Q3 SG&A deleverage likely heavier from store openings—track GM vs. SG&A tradeoffs and updated FY margin language .
  • Structural growth drivers: House of Sport/Field House expansion, DMN monetization, and GameChanger scale continue to support top‑line and margin longer term; look for quantitative updates (users, monetization, traffic/productivity) .
  • Foot Locker integration: Deal is closed; near‑term focus on leadership, store investments, and merchandising; monitor synergy milestones, cost actions, and any early read on NA/International turnaround cadence .
  • Capital allocation: Large capex program (~$1.0B net); dividends and opportunistic buybacks balanced against integration and growth investments; inventory remains positioned to fuel demand .

Appendix: Documents reviewed and timing

  • Q1 FY2025 8‑K/press release and call (May 28, 2025): reaffirmed FY guide; Q1 comps +4.5%; non‑GAAP EPS $3.37; FY gross margin +~75 bps at midpoint .
  • Q2 FY2025 8‑K/press release and call (Aug 28, 2025): raised FY guide; comps +5.0%; non‑GAAP EPS $4.38; GM +33 bps; pre‑opening expenses concentrated in Q3 .
  • Foot Locker acquisition completion (Sept 8, 2025): closed; synergy and leadership updates .
  • Q3 FY2025 schedule (Nov 3, 2025): call set for Nov 25, 2025 (pre‑open); full recap pending release of the 8‑K 2.02 and transcript .