Dick's (NYSE:DKS) Surprises With Q2 Sales

Sporting goods retailer Dick’s Sporting Goods (NYSE:DKS) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 5% year on year to $3.65 billion. On the other hand, the company’s full-year revenue guidance of $13.85 billion at the midpoint came in 0.6% below analysts’ estimates. Its GAAP profit of $4.71 per share was 10.1% above analysts’ consensus estimates.

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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

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul.

With $13.77 billion in revenue over the past 12 months, Dick's is a mid-sized retailer, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale.

As you can see below, Dick's grew its sales at a mediocre 8.3% compounded annual growth rate over the last six years (we compare to 2019 to normalize for COVID-19 impacts), but to its credit, it opened new stores and increased sales at existing, established locations.

This quarter, Dick's reported modest year-on-year revenue growth of 5% but beat Wall Street’s estimates by 1.1%.

Looking ahead, sell-side analysts expect revenue to grow 3.1% over the next 12 months, a deceleration versus the last six years. We still think its growth trajectory is satisfactory given its scale and indicates the market is baking in success for its products.

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Store Performance

Number of Stores

A retailer’s store count influences how much it can sell and how quickly revenue can grow.

Dick's sported 889 locations in the latest quarter. Over the last two years, it has generally opened new stores, averaging 1.2% annual growth. This was 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.

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 4.3% per year. This performance suggests its measured rollout of new stores is beneficial for shareholders. We like this backdrop because it gives Dick's multiple ways to win: revenue growth can come from new stores, e-commerce, or increased foot traffic and higher sales per customer at existing locations.

In the latest quarter, Dick’s same-store sales rose 5% year on year. This performance was more or less in line with its historical levels.

Key Takeaways from Dick’s Q2 Results

We were impressed by how significantly Dick's blew past analysts’ EBITDA expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. On the other hand, its full-year EPS guidance slightly missed and its full-year revenue guidance fell slightly short of Wall Street’s estimates. Overall, this print was mixed but still had some key positives. The stock remained flat at $227.11 immediately following the results.

Dick's may have had a good quarter, but does that mean you should invest right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free.