Dick’s Sporting Goods beat revenue expectations in Q1 but trimmed its full-year earnings outlook, and the market wasn’t happy about it. DKS dropped 2.6% in premarket trading Wednesday.
DICK’S Sporting Goods, Inc., DKS
The retailer posted adjusted EPS of $2.90, just a penny ahead of the $2.89 Wall Street was expecting. Revenue hit $5.16 billion, up sharply from $3.18 billion a year ago and above the $5.07 billion forecast.
The revenue jump reflects the addition of Foot Locker, which Dick’s acquired and is now integrating into its broader retail operation.
$DKS (DICK’S Sporting Goods) Q1 2026 Earnings
Foot Locker integration progressing… DICK’S comps strong while Foot Locker turns profitable
KEY METRICS (Q1 2026)
Consolidated Net Sales: $5.17 billion +62.7% YoY
— Emmanuel – Big Tech & AI Investor (@EmmanuelInvest) May 27, 2026
The Dick’s core business posted 6.0% comparable sales growth in the quarter. The Foot Locker business returned to both comp sales growth and profitability — a positive sign for the integration.
Dick’s scaled its Foot Locker “Fast Break” initiative to around 100 stores globally during Q1. The company remains on track to reach roughly 250 stores by back-to-school season.
Despite the top-line beat, the earnings outlook is what’s moving the stock.
Full-year EPS guidance was updated to a range of $13.27 to $14.27. That’s down from the prior range of $13.70 to $14.70.
The non-GAAP EPS guidance held steady at $13.50 to $14.50, but that midpoint of $14.00 still sits below the analyst consensus of $14.30.
Full-year net sales guidance came in at $22.1 billion to $22.4 billion. The midpoint of $22.25 billion is slightly below the $22.3 billion Wall Street had penciled in.
The company also updated its consolidated operating income guidance to $1.69–$1.81 billion, down slightly from $1.71–$1.83 billion previously.
Not everything in the guidance was a step back. Dick’s raised the low end of its comp sales outlook for both businesses.
The Dick’s Business comp sales growth range moved to 2.5%–4.0%, up from 2.0%–4.0%. The Foot Locker Business comp sales range was raised to 1.5%–3.0%, up from 1.0%–3.0%.
The GAAP EPS for Q1 came in at $3.54, compared to $3.24 in the prior year quarter. The non-GAAP figure of $2.90 was down from $3.37 a year ago, partly due to the dilutive effect of 9.6 million new shares issued as part of the Foot Locker acquisition.
The S&P 500 futures were up 0.3% at the time of the premarket move, meaning the DKS drop was stock-specific, not a broader market reaction.
DKS was down 2.6% in premarket trading as of Wednesday morning.
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