Dick's Sporting Goods Inc. is set to release its second-quarter earnings on Tuesday before U.S. markets open, with investors focusing on revenue momentum and the company’s integration plans for the $2.4 billion Foot Locker acquisition.
Analysts project adjusted earnings of $3.78 per share on revenue of $5.65 billion, according to a consensus compiled by Reuters. The company reported adjusted earnings of $2.90 per share and revenue of $5.17 billion in the first quarter, exceeding forecasts of $2.86 per share and $5.06 billion, respectively. Revenue surged 54.79% year-over-year, largely due to the consolidation of Foot Locker’s results following its acquisition by Dick’s in March.
Same-store sales growth, excluding acquisitions, rose 4.1% in the first quarter, with Dick’s locations posting a 6.0% increase and Foot Locker locations up 0.6%. Gross margin stood at 33.56%, reflecting the operational impact of the Foot Locker integration.
The pending acquisition, scheduled for completion in September 2025, has drawn attention to Dick’s strategic shift toward a broader sporting goods footprint. DA Davidson noted a 13% increase in product SKUs for men’s and women’s merchandise since May, with women’s categories showing particularly strong gains.
Analysts remain bullish on the stock, which trades at 18.1 times trailing earnings and 12.7 times forward estimates. The consensus price target is $251.05, implying 37% upside from the current price of $183.23. Wells Fargo upgraded Dick’s to buy from hold on August 10, while DA Davidson and Baird maintained buy ratings with price targets of $260 and $264, respectively.
Dick’s GameChanger platform, which serves roughly 10 million active users and generated about $150 million in annual revenue last year, is expected to contribute 30 to 50 basis points to comparable sales and 10 to 15 basis points to gross margin annually over the next five years, according to Baird estimates.
