Dick's Sporting Goods faced a challenging first fiscal quarter, incurring $96.5 million in charges related to its acquisition of Foot Locker, which included $53.8 million for merger costs and $42.7 million for inventory clearance. Despite these costs, Dick's revenue rose to $5.17 billion, surpassing expectations, and net income increased to $319.82 million.
Foot Locker showed a modest comparable sales growth of 0.6%, marking its first increase since fiscal 2024, while Dick's stores experienced a 6% rise in comparable sales. Following these results, Dick's tightened its guidance for 2026, expecting comparable sales growth for Dick's to be between 2.5% and 4% and for Foot Locker between 1.5% and 3%.
However, it lowered its consolidated operating income and earnings per share forecasts. The company is actively working on improving Foot Locker's performance through store closures and a pilot program that has shown promising results in sales growth.
By the end of the quarter, Foot Locker operated 2,483 stores globally, and the pilot program is set to expand significantly ahead of the back-to-school and holiday seasons