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Dick’s Sporting Goods faces integration costs after Foot Locker deal

The company booked $96.5 million in Foot Locker-related expenses in the quarter, while net sales rose to $5.16 billion, up about 63% year over year.

Reported · Written up by our desk · Guidance

Dick’s Sporting Goods is trying to balance rapid growth with higher costs following its $2.5 billion Foot Locker acquisition in September 2025, with investors focused on whether integration will weigh on profits even as demand for sports and fitness gear stays resilient, MarketBeat Ratings reports.

In its most recent earnings, Dick’s said net sales were $5.16 billion, up about 63% from $3.17 billion a year earlier, largely driven by the Foot Locker deal. The company reported net income of $320 million, or $3.54 per diluted share under GAAP, while adjusted earnings per share of $2.90 missed analysts’ estimates by a penny.

Dick’s also reported a 6% increase in comparable sales at its own stores, contributing to 4.1% overall comparable growth company-wide. At Foot Locker, pro forma comparable sales improved to 0.6% from a nearly 3% decline a year earlier.

The quarter included $96.5 million in Foot Locker-related expenses, split between merger costs such as severance and store closures, and costs tied to liquidating excess inventory. MarketBeat Ratings adds that the charges pulled down the bottom line even as gross profit was $1.68 billion and operating income reached $451 million before special items.

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