By Connor Hart

Dick's Sporting Goods raised its outlook for its namesake banner, which continues to log higher sales, though profit slipped in part due to higher costs tied to the turnaround of its recently acquired Foot Locker banner.

The retailer said Tuesday that comparable sales across its namesake banner are now expected to grow 3.5% to 4% this year, compared with a prior outlook of up 2% to 3.5%. The company also raised its full-year earnings for its Dick's banner to $14.25 to $14.55 a share, from $13.90 to $14.50 a share.

On a companywide basis, Dick's closed its acquisition of Foot Locker during the recent quarter and said it is undertaking a review of assets, which coupled with merger and integration costs, is expected to result in future pre-tax charges of up to $750 million.

Executive Chairman Ed Stack said the company is taking decisive actions to "clean out the garage" at Foot Locker by clearing inventory and closing underperforming stores.

For its quarter ended Nov. 1, Dick's posted a profit of $75 million, compared with $228 million a year earlier.

Stripping out one-time items, earnings were $2.07 a share, and when only accounting for the company's namesake banner, adjusted earnings were $2.78 a share. Analysts polled by FactSet had expected adjusted earnings of $2.69 a share.

Sales across Dick's namesake banner rose 5.9% to $3.24 billion. Foot Locker notched sales of nearly $931 million, resulting in companywide sales of $4.17 billion. Wall Street had modeled $3.19 billion.

Comparable sales, or those from stores and digital channels open for at least a year, grew 5.7% across Dick's namesake banner, boosted by higher average ticket sizes and transactions. Analysts were looking for same-store sales to climb 3.7%.

Shares fell 6.9% to $192.00 in premarket trading.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

November 25, 2025 07:39 ET (12:39 GMT)

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