Dick’s Sporting Goods Inc. maintained its annual sales and profit forecast, a sign of strength as the retailer prepares to acquire struggling footwear chain Foot Locker Inc.
The company said earnings per share could be as high as $14.40 for the upcoming year. Comparable store sales are expected to gain 1 percent to 3 percent in 2025. The outlook does not include impact from its plan to buy Foot Locker.
The $2.4 billion deal for Foot Locker announced earlier this month unites two retailers with drastically different business models. Dick’s, which has about 800 big box sporting goods stores across the US, will add a 2,400-store chain largely made up of smaller mall-based shops in 20 countries.
Dick’s shares gained about 1 percent in premarket trading on Wednesday. The stock had been down 24 percent through Tuesday’s close. The company had already posted preliminary results for the first quarter on May 15 when it announced the Foot Locker acquisition.
Strong Sales
Lauren Hobart, Dick’s chief executive officer, has spent the last few years revamping the retailer’s store and upgrading e-commerce functions. The company has posted strong sales in recent quarters despite concerns about consumer spending, boosted by growth in its footwear business.
Dick’s said it will operate Foot Locker as a separate business unit and retain its branding. Executives cited Nike Inc.’s longtime relationship with Foot Locker as a reason for the deal, along with potential for international expansion.
Both Dick’s and Foot Locker are trying to cope with cost pressures prompted by US President Donald Trump’s trade wars. Footwear brands are raising prices as they push added costs in production hubs targeted by Trump with elevated tariff rates, such as China and Vietnam, to consumers.
By Kim Bhasin
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Dick’s Sporting Goods’ acquisition of Foot Locker will have impacts on the rest of the industry, from brands such as Nike and Adidas to rival retailers like JD Sports.