DICK'S Sporting Goods — Second Quarter 2026 Earnings Summary

Financial Performance

• Consolidated net sales for the 13 weeks ended August 1, 2026, reached $5,587 million, a 53.2% increase from $3,647 million in the prior year period.
• Year-to-date net sales for the 26 weeks ended August 1, 2026, totaled $10,751 million, up 57.6% from $6,821 million in the prior year period.
• GAAP earnings per diluted share for the quarter were $3.50, down from $4.71 in the prior year; non-GAAP earnings per diluted share were $3.53, down from $4.38.
• Year-to-date GAAP earnings per diluted share were $7.04, compared to $7.95 in the prior year; non-GAAP earnings per diluted share were $6.43, compared to $7.75.
• GAAP operating income margin for the quarter was 7.9%, down from 12.4% in the prior year; non-GAAP operating income margin was 8.1%, down from 13.0%.
• Year-to-date GAAP operating income margin was 8.3%, down from 12.0%; non-GAAP operating income margin was 7.7%, down from 12.2%.
• GAAP net income for the quarter was $315 million, a 17% decrease from $381 million; non-GAAP net income was $319 million, a 10% decrease.
• Year-to-date GAAP net income was $635 million, a 2% decrease from $646 million; non-GAAP net income was $581 million, an 8% decrease.
• Cash and cash equivalents were $914 million as of August 1, 2026, down from $1,231 million in the prior year.
• Inventories, net increased to $5,565 million from $3,404 million in the prior year.
• Long-term debt and financing lease obligations were $1,906 million, up from $1,485 million in the prior year.
• Share repurchases totaled $141 million for the 26 weeks ended August 1, 2026, down 53% from $299 million in the prior year; $3.0 billion remains under existing repurchase authorizations.
• Dividends paid were $225 million for the 26 weeks ended August 1, 2026, up 15% from $196 million in the prior year.
• Gross capital expenditures were $743 million for the 26 weeks ended August 1, 2026, up 41% from $526 million in the prior year.

Guidance and Future Outlook

• Full-year 2026 consolidated net sales outlook is $21.9 billion to $22.2 billion.
• Full-year 2026 operating income outlook is revised to $1.45 billion to $1.55 billion (GAAP) and $1.46 billion to $1.56 billion (non-GAAP).
• Full-year 2026 earnings per diluted share outlook is $10.94 to $11.94 (GAAP) and $11.00 to $12.00 (non-GAAP), based on approximately 90 million diluted shares and an effective tax rate of approximately 29%.
• Full-year 2026 capital expenditures outlook is approximately $1.6 billion on a gross basis and $1.4 billion on a net basis.
• DICK'S Business comparable sales outlook for 2026 is maintained at positive 2.5% to 4.0% growth.
• Foot Locker Business proforma comparable sales outlook for 2026 is lowered to negative 2.0% to 0.0%.
• Segment profit outlook for the Foot Locker Business is lowered to a loss of $80 million to $40 million.

Business Segments and Product Lines

• The DICK'S Business delivered 4.9% comparable sales growth for the quarter, driven by broad-based category growth, increased average ticket, and increased transactions.
• The DICK'S Business benefited from strong results related to the 2026 FIFA World Cup.
• Proforma comparable sales for the Foot Locker Business declined 3.6% for the quarter, impacted by challenging conditions in the athletic footwear marketplace.
• Foot Locker Business segment profit for the quarter was a loss of $31.9 million.
• Foot Locker Business segment profit for the 26 weeks ended August 1, 2026, was a loss of $14.4 million.
• The Foot Locker Business incurred $125.8 million of pre-tax charges during the 26 weeks ended August 1, 2026, related to a review of unproductive assets, including inventory write-downs and store closures.
• Total pre-tax charges related to the Foot Locker asset review are expected to reach up to $750 million, with $200 million expected in fiscal 2026.
• Store count for the DICK'S Business increased to 892 locations, while the Foot Locker Business decreased to 2,478 locations.
• Total store count across both businesses was 3,104 as of August 1, 2026.

Market and Competitive Landscape

• Conditions in portions of the athletic footwear and apparel marketplace became increasingly promotional during the quarter.
• The Foot Locker Business faced greater exposure to legacy footwear silhouettes and dependence on footwear launch and retro products.
• Fewer product launches occurred in the second quarter, and those that did launch performed below industry and company expectations.
• The company took action to remain competitively priced to protect and grow its leadership position.
• The company gained market share in the DICK'S Business despite growing pressure in the marketplace.

Risks and Challenges

• The company faces challenges from a challenging athletic footwear and apparel marketplace characterized by increased promotional activity.
• Integration of the Foot Locker Business involves ongoing pre-tax charges for asset optimization, inventory write-downs, and store closures.
• The Foot Locker Business is expected to report losses for the full year 2026.
• The company is subject to risks related to macroeconomic conditions, consumer discretionary spending, and competition.
• The company faces risks associated with the Foot Locker acquisition, including the successful integration of the business and the realization of expected synergies.

Management Commentary and Tone

• Executive Chairman Ed Stack stated that while near-term dynamics led to a revised 2026 outlook, confidence in the long-term opportunities for both businesses remains unchanged.
• CEO Lauren Hobart expressed pride in the DICK'S Business performance, citing the strength of the athlete-focused strategy, differentiated assortment, and brand partnerships.
• Management noted that the DICK'S Business results reflect the strength of initiatives such as House of Sport, GameChanger, and the DICK'S Media Network.
• Management indicated a more cautious view for the balance of the year due to the challenging footwear environment but remains highly confident in the long-term opportunity at Foot Locker.

Other Key Points

• The company acquired Foot Locker, Inc. on September 8, 2025, for total consideration of $2.5 billion, primarily consisting of $2.1 billion in share consideration (9.6 million shares), $223.0 million in cash, and $111.6 million from pre-existing equity ownership.
• The company received $59.0 million in IEEPA tariff refunds and $2.1 million in related interest income during the quarter.
• A quarterly dividend of $1.25 per share was declared on August 24, 2026, payable on September 25, 2026.
• The company reported $125.8 million in pre-tax charges for the 26 weeks ended August 1, 2026, related to the Foot Locker asset review, with $40.4 million attributed to inventory write-downs and liquidation.
• The company has $3.0 billion remaining under its share repurchase authorization as of August 1, 2026.
• Foot Locker will be included in quarterly comparable sales calculations beginning in the fourth quarter of fiscal 2026.