DICK'S Sporting Goods, Inc. Q4 FY2025 earnings call

• Dick's business: Strong quarter and year, comps over 3%, double-digit non-GAAP EPS growth. Pillars of compelling omni-channel athlete experience, differentiated product assortment, deep brand engagement, strong teammates and culture. Opened 16 House of Sport and 15 Fieldhouse locations in 2025, plan to open ~14 House of Sport and ~22 Fieldhouse in 2026. - Foot Locker: Made progress in strengthening business, Fast Break Initiative showed strong positive comps and gross margin improvement. Inventory cleanup mostly complete. Expecting inflection point in sales and profitability starting back to school 2026.

Dick's business: Full-year 2025 record sales of $14.1 billion, comps increased 4.5%, operating margin 11.1%, non-GAAP EPS $14.58. Q4: Comp sales 3.1%, operating margin 11%, non-GAAP EPS $4.05. Foot Locker: Q4 pro forma comp sales decreased 3.4%. 2026 expected sales range $7.6 - $7.7 billion, comp sales 1% - 3%, operating income $100 - $150 million.

• Dick's business 2026: Sales $14.5 - $14.7 billion, comp sales growth 2% - 4%, operating margin ~11.1% at midpoint, high end expects 10 basis points operating margin expansion. - Foot Locker 2026: Sales $7.6 - $7.7 billion, comp sales 1% - 3%, operating income $100 - $150 million. Consolidated non-GAAP earnings per diluted share $13.50 - $14.50. - Capital allocation: Net capital expenditure ~$1.5 billion, 3% increase in quarterly dividend to annualized $5 per share, plan to repurchase shares.

Q: Brian Nagel asks about confidence in Dick's business momentum and deceleration in Q4 core Dix business.

A: Lauren Hobart says Q4 was strong with 3.1% comp on top of 6.6% comp, growth across categories, no trade down, confident in future momentum.

Q: Adrian Yee asks about Foot Locker's cleaning out the garage progress and fast break expansion.

A: Ed Stack says inventory cleanup done, fast break expanded to 10 stores in LA, plan to scale to ~250 stores by back to school 2026.

Q: Simeon Gutman asks about Foot Locker EBIT and Dick's margin.

A: Ed Stack says Foot Locker's EBIT is affected by fast break process, closing fewer stores than expected, confident in long-term improvement.

Q: Kate McShane asks about Game Changer and retail media.

A: Lauren Hobart says Game Changer is a leader in tech sports, drives strong comps and profitability, Dix Media Network benefits from Game Changer's live sports.

Q: Christopher Horvers asks about Foot Locker 11-store test and traffic.

A: Ed Stack says 11-store test was broad-based, fast break concept successful, not concerned about traffic as guided comps.

Q: Paul Lejeuze asks about synergies and Foot Locker's operating income.

A: Navdeep Gupta says Synergy expected $100 - $125 million medium term, too early to give long-term Foot Locker operating income outlook.

Q: Mike Baker asks about Foot Locker profit pacing and agentic commerce.

A: Navdeep Gupta says Foot Locker profits back half-weighted, looking into agentic commerce for teammate efficiency and athlete experience.

Q: Joseph Civello asks about Dix Media Network expansion to Foot Locker and cleaning out garage impact.

A: Ed Stack says focus on current businesses, cleaning out garage helps margins, sales, cash flow but not in synergies.

Q: Christina Fernandez asks about Foot Locker comps and regions.

A: Ed Stack says better Foot Locker comps due to cleaning out garage, North America and Europe performance similar, excited about Europe's turnaround with new leadership.