Sporting goods retailer Dick’s Sporting Goods (NYSE: DKS) beat Wall Street’s revenue expectations in Q4 CY2025, with sales up 59.9% year on year to $6.23 billion. The company’s full-year revenue guidance of $22.25 billion at the midpoint came in 2.2% above analysts’ estimates. Its non-GAAP profit of $3.45 per share was 17.4% above analysts’ consensus estimates.
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Dick's (DKS) Q4 CY2025 Highlights:
- Revenue: $6.23 billion vs analyst estimates of $6.08 billion (59.9% year-on-year growth, 2.5% beat)
- Adjusted EPS: $3.45 vs analyst estimates of $2.94 (17.4% beat)
- Adjusted EBITDA: $465.3 million vs analyst estimates of $466.4 million (7.5% margin, in line)
- Adjusted EPS guidance for the upcoming financial year 2026 is $14 at the midpoint, missing analyst estimates by 5.6%
- Operating Margin: 3%, down from 9.9% in the same quarter last year
- Free Cash Flow Margin: 11.3%, up from 10.1% in the same quarter last year
- Same-Store Sales were flat year on year (6.4% in the same quarter last year)
- Market Capitalization: $17.59 billion
Company Overview
Started as a hunting supply store, Dick’s Sporting Goods (NYSE: DKS) is a retailer that sells merchandise for traditional sports as well as for fitness and outdoor activities.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years.
With $17.22 billion in revenue over the past 12 months, Dick's is one of the larger companies in the consumer retail industry and benefits from a well-known brand that influences purchasing decisions.
As you can see below, Dick’s 11.7% annualized revenue growth over the last three years was decent as it opened new stores and increased sales at existing, established locations.
This quarter, Dick's reported magnificent year-on-year revenue growth of 59.9%, and its $6.23 billion of revenue beat Wall Street’s estimates by 2.5%.
Looking ahead, sell-side analysts expect revenue to grow 28% over the next 12 months, an acceleration versus the last three years. This projection is eye-popping for a company of its scale and implies its newer products will spur better top-line performance.
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Store Performance
Number of Stores
The number of stores a retailer operates is a critical driver of how quickly company-level sales can grow.
Dick's opened new stores at a rapid clip over the last two years, averaging 39.9% annual growth, much faster than the broader consumer retail sector.
When a retailer opens new stores, it usually means it’s investing for growth because demand is greater than supply, especially in areas where consumers may not have a store within reasonable driving distance.
Note that Dick's reports its store count intermittently, so some data points are missing in the chart below.
Same-Store Sales
The change in a company's store base only tells one side of the story. The other is the performance of its existing locations and e-commerce sales, which informs management teams whether they should expand or downsize their physical footprints. Same-store sales provides a deeper understanding of this issue because it measures organic growth at brick-and-mortar shops for at least a year.
Dick’s demand has been spectacular for a retailer over the last two years. On average, the company has increased its same-store sales by an impressive 4.1% per year. This performance along with its meaningful buildout of new stores suggest it’s playing some aggressive offense.
In the latest quarter, Dick’s year on year same-store sales were flat. This was a meaningful deceleration from its historical levels. We’ll be watching closely to see if Dick's can reaccelerate growth.
Key Takeaways from Dick’s Q4 Results
We enjoyed seeing Dick's beat analysts’ revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. On the other hand, its full-year EPS guidance missed and its gross margin fell short of Wall Street’s estimates. Zooming out, we think this was a mixed quarter. The stock traded up 1.8% to $198.49 immediately following the results.
Is Dick's an attractive investment opportunity at the current price? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).
