Dick's Sporting Goods Issues Cautious FY25 Outlook Amid Economic Concerns

Dick's Sporting Goods has issued a cautious outlook for 2025, predicting earnings per share between $13.80 and $14.40, below Wall Street expectations of $14.82. Despite reporting strong fourth-quarter results, with a record comparable sales increase of 6.4% and total revenues of $3.89 billion, the company anticipates a challenging economic climate due to factors like inflation and potential tariffs. Executive Chairman Ed Stack highlighted the uncertainty in consumer spending, while CEO Lauren Hobart noted that the company's strong sales quarter reflects robust demand despite the tempered forecasts. The retailer plans to continue expanding its footprint, with plans to open additional House of Sport locations in 2025, signaling long-term confidence in its business model. However, the overall market reaction has been negative, with shares trending lower amid these warnings. This sentiment reflects broader concerns shared by other retailers about slowing consumer spending in an unstable economic environment.