Dicks Sporting Goods Q1 Sales Beat Estimates, Forecast Cut

Dicks Sporting Goods reported strong first-quarter sales that exceeded analyst expectations but lowered its full-year profit forecast, citing costs related to its acquisition of Foot Locker. The company's shares fell in premarket trading Wednesday.

For the quarter ended May 2, consolidated net sales surged 62.7% to $5.17 billion, driven by the inclusion of Foot Locker and steady demand for footwear and apparel. The company reported adjusted earnings per share of $2.90, narrowly beating estimates. The core Dicks business posted a 6% increase in comparable sales, while the Foot Locker segment returned to both comparable sales growth and profitability.

Despite the robust sales performance, the company revised its full-year earnings guidance downward. It now expects consolidated earnings per share in the range of $13.27 to $14.27, compared to a prior forecast of $13.70 to $14.70. The company attributed the pressure on earnings to margin challenges tied to the Foot Locker integration, including costs for store closures, inventory cleanups, and other acquisition-related expenses totaling $96.5 million for the quarter.

Executive Chairman Ed Stack described the early signs from Foot...