Dick’s Sporting Goods Just Did the One Thing Nobody Else on Wall Street Has the Guts to Do

It feels like nine out of ten companies this earnings season are following the same script: report your numbers, toss in some metrics that make accountants giddy, and then, just when it starts to sound optimistic, quietly mention tariffs and lower your full-year guidance. It’s become such a pattern that at this point, I almost expect it.

But not Dick’s Sporting Goods. While most of the retail world is playing defense, Dick’s is holding the line… and then some. Just weeks after announcing its $2.4 billion acquisition of Foot Locker, the company reported a strong first quarter and, more importantly, reaffirmed its full-year outlook. No trimming. No nervous disclaimers. In this market, that feels about as rare as a blue moon.

For the quarter ending May 3, Dick’s reported $3.17 billion in revenue, a 5% increase from last year and slightly above expectations. Same-store sales rose 4.5%, which tells me that growth isn’t just coming from inflation or new store openings. People are walking in and spending more… both in terms of how many are shopping and how much they’re buying. That kind of growth makes it clear: customers aren’t backing off, and Dick’s isn’t relying on BOGO deals and panic markdowns to keep the lights on.

Earnings per share came in at $3.37, up from $3.30 the year prior… and that’s after swallowing some one-time costs related to the Foot Locker acquisition. Net income dipped to $264 million from $275 million, but if you ask me, that looks like a temporary hit from a strategic bet. In other words: they paid a cover charge to get into a club they think is going to be the place to be next year.

But what really caught attention wasn’t the beat itself… it was the conviction behind the numbers. While other companies are guiding lower, blaming everything from tariffs to weather patterns, Dick’s maintained its full-year forecast. The company still expects earnings per share between $13.80 and $14.40 and revenue between $13.6 billion and $13.9 billion. CEO Lauren Hobart said the numbers reflect a strong start to the year and “confidence in our strategies and operational strength,” even as they acknowledge a challenging macro environment.

It’s a bold stance, especially considering the scale of the Foot Locker acquisition. Foot Locker has had a rocky few years, facing declining sales and a shift away from traditional retail models as brands like Nike move more aggressively into direct-to-consumer. But Dick’s sees opportunity. The deal will allow them to reach younger, sneaker-obsessed customers and expand into international markets for the first time.

Executive Chairman Ed Stack says the deal will be a shot in the arm to earnings in the first full year, and they expect $100 to $125 million in cost synergies. I think that’s reasonable… especially when you consider how much overlap there probably is in back-office waste and underperforming real estate. If they play it right, there’s room to make this thing actually work… which is more than I can say for a lot of acquisitions lately.

Yes, the market reacted like a disappointed parent… Dick’s shares dipped around 15% on the announcement, while Foot Locker soared 80%. But this earnings report was a solid step in proving that the strategy might actually have legs. And with the stock rebounding 4% after the news, it feels like investors are finally getting over the sticker shock and starting to focus on what actually matters: the fundamentals.

PS: It’s a mess out there.

One day the market’s ripping, the next day it’s Black Monday all over again. Recent earning’s reports have been a total coin flip. One stock beats and explodes 30%… the next misses by a penny and gets sent to the Shadow Realm. And through it all, everyone’s begging for Jerome Powell to finally cave and cut rates.

But underneath all the panic headlines (“Inflation too sticky!” “Recession imminent!” “Tariffs round 4 incoming!”) something wild is happening…

We’re seeing violent price action. Especially in the small-cap space, where low floats and high anxiety are creating the perfect recipe for 100%+ pops before lunchtime. Some of these names are moving 200%+ in under 24 hours… and to our knowledge, NO ONE else is covering them.

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Stock.News does not have positions in companies mentioned.