Dick's Guides FY EPS $13.50–$14.50 as $500–$750M Foot Locker Cleanup Costs Persist
Dick's Sporting Goods reported Q4 above expectations but guided FY adjusted EPS of $13.50–$14.50, below the $14.67 consensus, due to integration costs from its $2.5 billion Foot Locker acquisition. The company has booked $390 million of the $500–$750 million expected cleanup costs and closed 57 stores while piloting 11 Fast Break locations.
1. Q4 Results and Full-Year Guidance
Dick's delivered Q4 results above analyst expectations but issued FY adjusted EPS guidance of $13.50–$14.50, below the $14.67 consensus. Management attributed the shortfall almost entirely to ongoing integration expenses from the Foot Locker acquisition.
2. Foot Locker Integration and Cleanup Costs
The $2.5 billion Foot Locker acquisition carries a total cleanup cost estimate of $500–$750 million, with $390 million already booked in fiscal 2025. To date, Dick's has closed 57 Foot Locker stores globally as part of its rightsizing efforts.
3. Fast Break Pilot and Sales Outlook
Dick's launched an 11-location Fast Break concept, featuring streamlined assortments and enhanced product storytelling, to revitalize former Foot Locker stores. The company expects comparable sales to turn positive by back-to-school, targeting 1–3% growth for the full year.