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SEC filingDICK'S Sporting Goods, Inc. reported strong consolidated results for FY 2025, driven by the acquisition of Foot Locker. Net sales increased 28.1% to $17.22 billion, up from $13.44 billion in FY 2024. The DICK'S Business segment achieved a 4.5% comparable sales increase. Gross profit was $5.67 billion, though gross margin declined to 32.92% from 35.90% due to acquisition-related inventory charges and lower margins from the Foot Locker Business. Operating income was $1.10 billion, and net income was $849.2 million, resulting in diluted EPS of $10.00. The company generated $1.54 billion in net cash from operating activities. The acquisition of Foot Locker, completed in September 2025, contributed $3.11 billion in net sales and established two reportable segments, positioning the company for future global growth.
DICK'S Sporting Goods, Inc. reported consolidated net sales of $17.22 billion for FY 2025, a significant 28.1% increase from $13.44 billion in FY 2024. This growth was primarily driven by the acquisition of Foot Locker, which contributed $3.11 billion in net sales since its acquisition on September 8, 2025. The DICK'S Business segment itself grew net sales by 5.0% to $14.11 billion, with a 4.5% increase in comparable sales. Profitability metrics were impacted by acquisition-related costs. Operating income decreased to $1.10 billion from $1.47 billion, and net income was $849.2 million, down from $1.17 billion. Diluted earnings per share were $10.00, compared to $14.05 in the prior year. The company generated strong operating cash flow of $1.54 billion.
Revenue growth was bifurcated between organic growth in the legacy DICK'S Business and the new contribution from the Foot Locker Business. The DICK'S Business achieved a 4.5% comparable sales increase, driven by growth in key categories: footwear, golf, athletic apparel, licensed merchandise, and team sports, partially offset by declines in outdoor equipment. The transaction growth was driven by a 4.2% increase in sales per transaction and a 0.3% increase in transactions. The Foot Locker Business, now a reportable segment, contributed $3.11 billion in net sales for the partial period following its acquisition. The company now operates two segments: DICK'S (encompassing DICK'S Sporting Goods, Golf Galaxy, Public Lands, Going Going Gone!, and GameChanger) and Foot Locker (including Foot Locker, Kids Foot Locker, Champs Sports, WSS, and atmos banners).
Gross profit was $5.67 billion, but gross margin declined 298 basis points to 32.92% from 35.90%. This decline was primarily due to a 127 basis point impact from a $217.9 million write-down and liquidation of Foot Locker inventory and 215 basis points from the lower gross margin profile of the Foot Locker Business. The DICK'S Business gross margin improved 44 basis points to 36.33%, driven by merchandise margin improvement. Operating income margin was 6.37%, down from 10.96%. Selling, general and administrative expenses increased to $4.34 billion (25.20% of sales) from $3.29 billion (24.51%), due to the addition of Foot Locker operations and strategic investments. The company incurred $164.2 million in merger and integration costs and $69.0 million in pre-opening expenses.
The company generated $1.54 billion in net cash from operating activities, an increase from $1.31 billion in the prior year, driven by changes in inventory and accounts payable. Net cash used in investing activities was $1.05 billion, primarily for capital expenditures of $1.14 billion and the net cash outflow for the Foot Locker acquisition. Net cash used in financing activities was $821.3 million, related to share repurchases ($342.1 million), dividend payments ($413.9 million), and other items. The balance sheet as of January 31, 2026, shows total assets of $17.41 billion, including $1.35 billion in cash and cash equivalents, $4.91 billion in inventories, and $5.54 billion in total stockholders' equity. Total liabilities were $11.87 billion, including long-term debt and financing lease obligations of $1.91 billion.
Management provided guidance for FY 2026, expecting total net sales in the range of $22.1 billion to $22.4 billion and diluted EPS between $13.70 and $14.70. This outlook includes approximately $150 million of anticipated Foot Locker acquisition-related costs. For the DICK'S Business, comparable sales growth is expected to be 2% to 4%, with segment profit of $1.58 billion to $1.66 billion. For the Foot Locker Business, the target is to return to profitability, with pro forma comparable sales growth of 1% to 3% and segment profit of $100 to $150 million, weighted toward the second half of 2026. Strategic priorities include repositioning the real estate portfolio, expanding DICK'S House of Sport and Field House concepts, optimizing the Foot Locker store fleet and assortment, and driving omni-channel growth. Key risk factors noted include macroeconomic pressures on consumer discretionary spending, intense competition, integration challenges related to the Foot Locker acquisition, and inventory management.