The capital expenditures (capex) of the company are projected at approximately $1.2 billion gross and $1 billion net. In terms of store activity, the company began FY25 with 885 stores and expects to end the year with the same count, following the opening of four stores and closure of four. Total square footage is set to increase slightly from 44.8 million to 45 million. It will operate 722 stores by year-end, maintaining 40.1 million square feet.
Dick’s Sporting Goods projects FY25 EPS of $13.8–$14.4 and net sales of $13.6–$13.9 billion, with 1–3 per cent comparable sales growth.
Q1 FY25 net sales rose 5.2 per cent YoY to $3.18 billion, with 4.5 per cent comparable growth.
The company agreed to acquire Foot Locker for $2.4 billion.
Executives expressed confidence in continued momentum, reaffirming the FY25 outlook.
The guidance includes the impact of current tariffs but excludes costs related to the planned acquisition of Foot Locker. The company announced a definitive agreement to acquire Foot Locker for approximately $2.4 billion in equity value and $2.5 billion in enterprise value. The deal is expected to close in the second half (H2) of 2025, subject to approvals, and will be funded through cash, borrowings, and potential new debt, Dick’s said in a press release.
Meanwhile, the company in its first quarter (Q1) of FY25 ended May 3, 2025, reported net sales of $3,175 million, up 5.2 per cent year-over-year (YoY). The comparable sales rose 4.5 per cent YoY, and the income before income taxes as a percentage of net sales declined slightly to 11 per cent from 11.3 per cent, while on a non-GAAP basis, it improved to 11.4 per cent.
The effective tax rate increased to 24 per cent from 19.6 per cent. The net income declined 4 per cent to $264 million, while non-GAAP net income held steady at $275 million. Diluted EPS were $3.24, down from $3.30 YoY.
“As you see in our first quarter results, we are proud of the strong position we are in today and incredibly excited about the future. Earlier this month, we announced our plans to acquire Foot Locker, a move that represents a truly exciting and transformational moment for Dick’s. For many years we have admired Foot Locker’s brand and the powerful community they’ve built in sneaker culture. By bringing our two great brands together, we see the opportunity to create a global leader in the sports retail industry by serving a broader set of athletes,” said Ed Stack, executive chairman at Dick’s.
“We are very pleased with our first quarter results. Our performance demonstrates the momentum and strength of our long-term strategies and the consistency of our execution. Our Q1 comps increased 4.5 per cent driven by growth in both average ticket and in transactions and this was our fifth straight quarter with comps over 4 per cent,” Lauren Hobart, president and chief executive officer (CEO) at Dick’s. “Our first quarter gross margin expanded, and we delivered non-GAAP EPS ahead of the prior year. We are reaffirming our 2025 outlook, which reflects our strong start to the year and confidence in our strategies and operational strength while still acknowledging the dynamic macroeconomic environment.”
Fibre2Fashion News Desk (SG)
