Dick’s Sporting Goods Inc shares fell in early trading as investors digested a sharp profit shortfall in the third quarter alongside strong revenue growth.

A softer operating margin, higher debt load and integration costs from the Foot Locker deal offset optimism around raised full-year guidance.

The company reported third-quarter adjusted earnings per share of $2.07, missing the analyst consensus estimate of $2.71.

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Metrics

Quarterly sales of $4.168 billion (+36.3% year over year) outpaced the Street view of $3.546 billion.

Dick’s delivered a 5.7% comparable sales increase across its core DICK’s business, driven by steady demand and improved in-store performance.

The firm opened 13 new House of Sport locations and six new DICK’S Field House locations during the third quarter.

Quarterly adjusted operating margin slumped 366 basis points to 5.8% from 9.5% in the year-ago period.

Dick’s Sporting Goods exited the quarter with cash and equivalents worth $821.331 million, lower than $1.458 billion a year ago.

The company’s total long-term liabilities expanded to $7.229 billion, compared with $4.170 billion in the year-ago period.

Dick’s Sporting Goods completed its acquisition of Foot Locker, aiming to cement its position as a global sports retail leader and has installed a world-class management team.

It also launched a review of underperforming assets, with related merger, integration and restructuring costs expected to generate future pre-tax charges of $500 million to $750 million.

Dividend & Outlook

On November 24, the company authorized and declared a quarterly dividend of $1.2125 per share. The dividend is payable in cash on December 26.

Dick’s Sporting Goods raised its 2025 GAAP EPS forecast to $14.25–$14.55 from $13.90–$14.50, compared with a $14.36 analyst estimate.

The retailer also lifted its 2025 sales outlook to $13.95 billion–$14 billion from $13.75 billion–$13.95 billion, below the Street’s $15.169 billion view.

Price Action: DKS shares are trading lower by 3.52% to $199.00 premarket at last check on Tuesday.

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