Dick's Sporting Goods Reports Q1 Sales Growth, Advances $2.5B Foot Locker Acquisition

Dick's Sporting Goods reported solid first-quarter fiscal 2025 results with net sales increasing 5.2% year over year to $3.18 billion, driven by strong comparable store sales growth of 4.5% and gains in key categories like footwear, apparel, and team sports. Adjusted earnings per share matched estimates at $3.37, while gross margin improved slightly due to increased merchandise margins. Despite a 17% share price decline over three months, analysts maintain a generally positive outlook with an average price target around $220, reflecting confidence in the company's strategic initiatives and market share gains. DA Davidson revised its price target down to $230 but upheld a Buy rating, viewing the recent Foot Locker acquisition dip as a buying opportunity. Management remains cautiously optimistic about fiscal 2025, projecting comparable sales growth of 1% to 3% and emphasizing investments in e-commerce, technology, and real estate repositioning. The company finished the quarter with strong liquidity, no borrowings under its credit facility, and a total debt of $1.5 billion, supporting its strategic growth plans amid macroeconomic uncertainties.