In the works: Dick's intends to deliver a decisive takeover of Foot Locker
Dick's Sporting Goods posts strong first-quarter earnings, reaffirms revenue guidance amid Foot Locker acquisition plan
Dick's Sporting Goods reported a fifth consecutive quarter of 4%-plus comparable sales growth on Wednesday, as net sales increased 5.2% to nearly $3.2 billion in the first quarter. Despite the ongoing threat of tariffs and decreasing consumer sentiment, the retailer reaffirmed its outlook for the year, anticipating comparable sales growth of 1% to 3% and revenue up to 3.7%, amounting to $13.9 billion.
Net income dropped by 4% to $264 million, reflecting the company's ongoing investments in growth initiatives. The retailer continued its store revamp efforts in the first quarter, adding two House of Sport locations and four Field House stores. Plans are underway to convert five Public Lands stores into three House of Sport and two Field House locations this year, with only three stores currently listed on the site, as Dick's has stepped back from the outdoors business.
The company's planned acquisition of Foot Locker has received scrutiny, with analysts questioning the move during the earnings call. Executive Chairman Ed Stack explained that while shareholders might prefer the company to continue its current trajectory, he believes that the acquisition is necessary for long-term growth.
Stack noted that the acquisition will bolster Dick's partnerships with brands, granting the retailer a foothold in the $300 billion sportswear market and helping it reach a customer base it doesn't currently cater to. Dick's CEO Lauren Hobart pointed out that the company currently only has 30% of its stores located in malls, and no access to many urban environments currently operated by Foot Locker.
Stack emphasized that Dick's does not make decisions for a short-term gain; rather, they make long-term investments for the company's future. Despite Dick's steady share growth over the years, Hobart noted that the retailer still holds just 8% of the market share in the industry, leaving ample room for both Dick's and Foot Locker to capture more market share.
Dick's plans to have a small team of employees focus on helping Foot Locker advance its Lace Up plan and integrate the business. The company praised Foot Locker's strategy as having solid priorities, including store revamps and a focus on digital. They expressed confidence in their ability to strengthen Foot Locker's position in the market.
GlobalData Managing Director Neil Saunders remarked that Dick's is entering uncharted territory by shifting from organic growth to mergers and acquisitions. Despite this, he highlights that Dick's is catering to intense competition from players like JD and recognizes the need to make bold moves to stay competitive.
References:[1] "Dick's Sporting Goods to Acquire Foot Locker in $2.4 Billion Transaction." CNBC, 2025.[2] "Dick's Sporting Goods Announces Acquisition of Foot Locker." PR Newswire, 2025.[3] "Dick's Sporting Goods Reports First Quarter 2025 Results." PR Newswire, 2025.[4] "Dick's Sporting Goods' Market Share in Sports Retail." Statista, 2025.[5] "Impact of Dick's Sporting Goods Acquiring Foot Locker." Yahoo Finance, 2025.
- In the sports industry, Dick's Sporting Goods' planned acquisition of Foot Locker is anticipated to provide a strong foothold for the retailer in the $300 billion sportswear market.
- The strategic move for long-term growth by Dick's Sporting Goods will allow it to cater to customer bases not currently serviced by the retailer, particularly in urban environments.
- In the AI-driven finance world, analysts question Dick's Sporting Goods' move to acquire Foot Locker, but Chairman Ed Stack emphasizes that such decisions are made for long-term investments, not short-term gain.
- By bolstering Dick's partnerships with brands, the acquisition of Foot Locker will offer the retailer a significant advantage in the competitive sports industry.
- Global Data Managing Director Neil Saunders remarks that Dick's Sporting Goods is entering uncharted territory by shifting from organic growth to mergers and acquisitions, following the footsteps of competitors like JD.
