In the quarter, sales rose 5.0 percent to $3.65 billion, topping analysts’ consensus estimate of $3.6 billion. Same-store sales gained 5.0 percent on top of a 4.5 percent increase a year ago and well ahead of analysts’ consensus target of 3.1 percent.

Net income rose 5.2 percent to $381 million, or $4.71 a share, from $362 million, or $4.37, a year ago. Adjusted earnings, which exclude certain one-time items, slipped 1.9 percent to $355 million, or $4.38 a share, from $362 million, or $4.37, a year ago, but still exceeded analysts’ consensus target of $4.29.

Gross margins in the quarter improved 33 basis points to 37.06 percent from 36.73 percent a year ago. Selling, general and administrative expenses increased to 24.10 percent of sales from 22.93 percent a year ago.

Operating earnings declined 3.8 percent to $452.2 million, or 12.4 percent of sales, from $470.1 million, or 13.5 percent, a year ago. The latest quarter included merger and integration costs of $8.0 million. Excluding those costs, operating profits in the latest quarter were down 2.1 percent to $460.2 million.

“With Q2 comps at 5 percent, our momentum continues to build – a clear reflection of the strength of our long-term strategies and investments,” said Ed Stack, executive chairman. “We remain very enthusiastic about the strategic benefits from the Foot Locker acquisition. As previously shared, Foot Locker shareholders approved the transaction. We have also received all required regulatory approvals, and we anticipate that the deal will close on September 8th.”

“We are very pleased with our strong Q2 results,” said Lauren Hobart, president and chief executive officer. “Our performance shows how well our long-term strategies are working, the strength and resilience of our operating model and the impact of our team’s consistent execution. Our Q2 comps increased 5.0 percent, with growth in average ticket and transactions, and we drove second-quarter gross margin expansion. We are raising our full-year 2025 outlook to reflect our strong Q2 results and the ongoing confidence we have in our business, grounded in our team’s execution of our strategic pillars.”

 

 

 

Full Year 2025 Outlook
The company’s full-year outlook for 2025, which excludes acquisition-related costs, investment gains, and results from the planned acquisition of Foot Locker, is as follows:

  • Earnings per diluted share are now expected in the range of $13.90 to $14.50, up from $13.80 to $14.40 previously.
  • Additionally, net sales are expected to range between $13.75 billion to $13.95 billion, up from prior guidance of $13.6 billion to $13.9 billion.
  • Comparable sales are expected to increase in the range of 2.0 percent to 3.5 percent compared to previous guidance calling for growth between 1 percent and 3 percent.
  • Capital expenditures are still expected to be approximately $1.2 billion on a gross basis and approximately $1.0 billion on a net basis.

Image courtesy Dick’s Sporting Goods