DKS - Earnings call transcript Q3 2025 | DICK'S Sporting Goods, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to DICK'S Sporting Goods, Inc.

Third Quarter 2024 Earnings Conference Call [Operator Instructions]

And I would now like to turn the conference over to Nate Gilch, Senior Director of Investor Relations. begin. may you Nate,

Nathaniel Gilch

and and quarter for call XXXX our Executive Lauren everyone, Officer. Chief discuss will us our Hobart, Officer; Chief and third results. President Gupta, thank morning, our joining Financial you to be Navdeep Good On today's

at today's located for playback Relations of on Investor months. will call A approximately archived XX be our website investors.dicks.com

cautionary conjunction as report to well risk these that the on our As to in various SEC, with discussions subject Any with statements, as XX-K cautionary which could statements and statements our should our in a earnings filings annual Form cause factor are made be release reminder, including during from we will last be differ actual our call. in statements such this results and statements. making uncertainties materially forward-looking considered risks

We forward-looking these any assume statements or update obligation no of to information.

call. our reconciliation measures Please referenced to find refer a today's Investor website to non-GAAP financial Relations of our in

for your XXXX earnings And quarter are XXXX. March XX, to on fourth future planning we finally, our results publish scheduling purposes, tentatively

now I turn call Lauren. over will that, With to the

Lauren Hobart

you, Thank good everyone. and morning, Nate,

morning, we As another strong this delivered quarter. announced we earlier

show results strategies execution very our are of These our team. our our are from well QX proud year-to-date. performance results working We and great how long-term and the

passionate our and differentiated athlete QX deep comps knowledgeable Our success. increased who engagement brand X.X%, X to strategic product our assortment, experience, and the driven of omnichannel are our pillars by with integral DICK'S teammates

had market to share. gain excellent and season continued We an back-to-school

results, driven margin higher expanded XX of basis third from and $X.XX. margin year's EPS merchandise points Our a quarter non-GAAP last by we delivered gross

comp range $XX.XX in range X.X% raising quarter in our of in We year the the we to continued performance and now sales year to outlook. are our of of again growth As for expect X.X% full we in EPS to confidence business, the be a the be and our the $XX.XX. full result strong have to

our store heart We're our with knowledge and athletes. service focus digital enhanced our a the strategy athlete engagement with product invest long-term of training, the is omnichannel experiences and experience. drive to elevating At across continuing to on

about We of House Sport. strong of feel great performance the

retail We partners our and with athletes, sports strong brand redefining and creating engagement communities. are

to strong and having needs continue sport on We concept uniquely House both on positioned and a to culture of see our of culture across influence and all is lifestyle. the performance meet athletes sport Sport

ahead this House X by bringing opened season. locations, of of the earlier more us X we QX, now XX In month, followed holiday open Sport to

Sport XXXX. approximately we XXXX, expect on locations, to In XX House XX remain track opened XXX to locations by open of have and to we

concept. both locations, by profitability. House Inspired revolutionize X approximately next-generation our opened a bringing XXXX, locations. QX, well stores House another do we In Sport, sales internally now Field of very by as XX House and which XX In earlier to open followed we expect X open. us Field month, to These House continued to our with foot Field refer to DICK'S we continue in format, to XX,XXX-square we stores this

for one areas our in Texas marketing exciting to an House are the us the where infrastructure The potential. for market enhance is in and Sport of capture and opportunity omnichannel growth locations we athletes in new investing experience and this of our

in planning in the XXXX. to is ground on we early quarter, new center expected Fort which Worth, broke open Texas, distribution This we've been

our capabilities athlete are digital experience. Our central omnichannel to

DICK'S continued mobile for app. We athletes dicks.com the our on experience and shopping to our improve including

positions uniquely the assortment diverse destination products. for and us elevated as new Our

expanding key the product and of categories. new technology help our to across this find app quicker, our RFID and other drops golf to giving quarter, in And also we improved DICK'S past including our expanded technology. them our We're launch teammates tools footwear use reservations include product right beyond products

As youth the and multibillion-dollar GameChanger Over strategy And approximately in average tech is we to a last app XX% our X.X the ecosystem. strengthening discussed, the third key during continues had the quarter, from leadership digital GameChanger on were a users sports in active our year. increase daily be of X million we part in GameChanger million unique quarter. users active

Providing differentiated in for destination on-trend U.S. helped DICK'S products make the the sport go-to

brand Sport relationships to doors have and as and existing Our they opened can. showcase House vertical of enable in strengthened one to else a brands brand way Field our partnerships concept partners new and us no House

brands. steps Our vertical products brands and holiday continued well, be categories national taken And and priority stocked categories to perform deliberately fully for key led shopping. to by our important we've flagship very across

year. Looking the next product about ahead, optimistic we into pipeline are

and we're very fun closing, Watt believe confident results experience sales J.J. third quality omnichannel which featuring and so in and drive strategy highly holiday this We holiday strong service pleased long-term buzz. with really our are quarter growth. powerful driving with will our Legend, athletes product, resonate with and NFL well much year's our In to sustained season, our is differentiated family, campaign along profit this

to to season. hard our Sporting and this athletes on like and work thank all DICK'S our great commitment Goods for I'd focus of holiday teammates their experiences delivering for for their

turn financial that, Navdeep our in With to I'll detail. results share to over more the call

Navdeep Gupta

and morning, Lauren, everyone. good you, Thank

increased sales X.X% year-to-date Let's ticket performance. in some comps X% and quarter, strong increase Through third increase by average the our a for a $X.XX our shift, net consolidated the begin to X.X% increased X.X%, Adjusting driven transactions. of in calendar highlights with billion.

million same of non-GAAP period EBT EBT was $XXX.X last in XX-week year. net sales. XX.XX% $X.XX of the up billion, XX.XX% net sales is This or from of

non-GAAP diluted an earnings diluted year, $XX.XX. the earnings per $X.XX share of per XX-week last In delivered share This of total, for compares of XX% we increase to period.

which Adjusting continued QX comps the our X.X% we to share. increased the shift, market view believe our to moving Now business, the as provides clearest calendar results. of for QX we gain

average transactions. and in X.X% by strong partially increase offset X.X% in modest a a ticket Our comps by driven decline were

athletic very net did Consolidated footwear, well billion. across apparel Our strength sports. team increased and back-to-school sales to $X.XX X.X% with categories

week the shift calendar from unfavorable we call, the quarter's As included of the previewed XXrd last during this last year. impact the

key expected, shifted sales $XXX per As approximately into back-to-school and unfavorably QX, quarter in and diluted impacting million week share. by out earnings this QX the $X.XX of third a

quarter margin This for XX remained at the net from or profit increased higher last the points occupancy by shift. calendar by Gross merchandise was sales costs of favorable our our to and $X.XX quality This from billion assortment. points unfavorable deleverage by third the offset basis results. was sales total on driven due expected impact and basis of strong partially to XX.XX% year's mix of non-GAAP XX sales increase driven

remaining expected expenses points basis, approximately points $XXX.X On compared SG&A by impact to as on shift. last results. year-over-year talent deleverage increase strategic marketing, across investments was as strength to a year's higher our the based and non-GAAP driven X.X% this incentive the of from million primarily due deleverage technology of basis reported The increased increase unfavorable calendar was XXX well This compensation. to total to XX with basis sales non-GAAP and business our

million, due year versus of the store Preopening a timing prior difference of expectations to to million $X.X compared decrease new in and our openings. favorable expenses were $XX.X

XX impact $XXX.X or of of X.X% of in XXXX. net basis the EBT million of approximately net points. sales EBT of $XXX.X an from XX.X% a or sales. calendar This QX compares million shift was unfavorable non-GAAP to This included

per This of per diluted to share last delivered year. we share total, In $X.XX. a earnings compares of diluted earnings $X.XX non-GAAP

year As per I included from diluted mentioned impact earlier, earnings current $X.XX in calendar share. unfavorable the the an shift of

on ended our QX credit sheet. cash balance We looking of with our billion Now $X.X to unsecured and cash $X.X no billion and facility. borrowings approximately equivalents

quarter-end levels of compared Our year. last XX% to inventory increased QX

As about lean we XXXX. categories, have into assortment, well into which key a items previously, drive expect as growth maximize our to decision made in differentiated to have conscious as benefit early we talked to we QX our of the and

product Our believe in and we our and well enter investment we some is the strongest quarter. is clean of positioned inventory fourth as our offerings

meaningfully inventory In is down year-over-year. clearance our fact,

million, Net approximately capital million Turning to expenditures in third quarter we capital paid were our quarterly $XX allocation. $XXX dividends. and

a for shares average XX,XXX also our We $X.X stock. this $XXX.XX. an million of repurchased stock of of million Thus our at have of total approximately far year, we repurchased price $XXX.X

million. continue expect the For year, to approximately full share $XXX of repurchases we

to moving outlook our for Now XXXX.

said, operational strength and our strong full our raising performance shopping reflects outlook. strategic environment again dynamic against our are QX Lauren This the initiatives year in balanced macroeconomic season. we and traditional As our holiday shorter confidence and

$XX.X expectation of now We to to sales billion $XX.X to $XX.X expect the consolidated prior $XX.X our billion billion. range in compared net of billion

growth. We growth to to X.X% X.X% in now to X.X% expectation full sales the year prior range of compared of X.X% our expect comp

expectations. year-over-year expand to it Driven our gross anticipate by prior of exceed we to the continue will expect quality and now slightly assortment, margin

year-over-year. the our expect position of are for to ourselves continue term long strength to and the and XXXX on Based we to investments strategic over making deleverage better business, SG&A

margins expect XX.X% We at EBT continue to the at to midpoint. of be sales

we $XX.XX. to $XX.XX total, be earnings per to of range $XX.XX $XX.XX diluted anticipate In of in to to the prior share our now expectation compared

approximately an effective of guidance diluted and earnings XX%. on tax is based outstanding Our average million XX rate shares

We $XXX continue approximately year. to expect net of million for the capital expenditures

to first our $XX the approximately $X.XX due per or shifted X Lastly, sales million share of through reported keep and impact quarters calendar, of the the by in EPS diluted the benefited mind, approximately year. total

or in impact diluted approximately $X.XX a million the share. modestly unfavorable of expect We quarter fourth per $XX

shift this not impact results. our basis, On a will full year

Furthermore, in in will versus $XXX $XXX impacted recall million in per last that total, last approximately XXXX. week earnings by QX added diluted share QX In million or $X.XX be unfavorably share. compares diluted per XXrd year's and $X.XX sales approximately year

contemplated This been guidance. all updated has within our

performance our closing, of pleased strategy. enthusiastic with success the We In long-term are about third future very remain quarter very of the our our we business. and

our DICK'S the Operator, remarks. questions. Sporting concludes now Goods. interest your may prepared This you in you line open for for Thank

Operator

Your Barclays. line comes Instructions] of Yih Adrienne question the from [Operator first with

Adrienne Yih-Tennant

the going be And first to My question in current ability environment. on say congratulations. let your me succeed is actually to just

those what more retail value-oriented and kind they're probably earnings kind winners seen that stronger So is price back up It's are your The ATV. comp of we've is the full selling, opposite. the on far of are who composition most season so AUR of price. giving of during

of kind talk much multi-brand the -- nonpromotional given in biggest power sales of So you're with sporting era strategy, why your that shift the retailer. retail market an and of holiday so Lauren, national can taking you're is share promotional very you the of one goods why DICK'S positioned, of about

Lauren Hobart

pleased to a to strategies -- the are and are a now over fact working. And we really of with Yes, X had I we X% comp the put it just really is that has think long-term in Adrienne. testament our comp your quarters row there have point, up. that Thanks, we

point gain access to And I product. continued the would to to we've had differentiated that

to and an vertical same strategy point, job, high Our amazing is executing national brands. partners at entire a And multi-brand our your throughout and retail the incredibly merchant team level. such done our at our team has an absolutely between organization the time,

to serve a So we're a and athletes with really really way engaging that the in experience. able increasingly that is it they products fun and do need

think, I gain They're athlete look doing. athletes quarter. They past for to active our prioritizing and important, categories prioritizing a some tremendous team back-to-school been time sports. It's lifestyle. at how in have the healthy this and are saw We

demographics. really more footwear, income So athletic quarter. over ecosystem saw X.X just outdoor golf, And outside. million we also growth saw our categories sports, And all past being we enter and team just prioritizing of apparel, the the across they're all athletes living

of industry So again, saying. your different the trends to sort are be we perhaps point, would seeing in

fact would think moment. is is exciting mostly NCAA culture and the the sport and really in just culture having an And the we an be expect influence and the sport. football the 'XX in to on continue point in basketball, outsized we're L.A. in that on to Cup that for have calling that playoff in and on what you fire, which U.S. this and about expanded fact an The industry. really to in 'XX, time in then the sports we're World a is Olympics year the to going going time it, women's between sport country if such I exciting is

really And I sport. is great in a in that just are ride those trends think lane DICK'S such in to we rooted

gear of merchandising want, performance the increasingly we have lifestyle all are product that the ever but could also is sport. you We

confidence athlete we why have and growth in that's such going our our forward. so And

Adrienne Yih-Tennant

I guess, follow-up, come. man tariff my Navdeep. And has officially, Fantastic. the

XX% for the we Historically, Canada, an So yesterday that in don't obviously, update XX% had label. and evening, you've you told us the much private China. Mexico exposure, have already but

us you've how that thinking the you this are that? just us? can now assuming quasi-official before. So numbers, remind update But answer just that we that given some doesn't about you I'm us change have

Navdeep Gupta

for Yes, question. Adrienne, that thanks

as more about your We the thank of QX. the we comments results be here on have you couldn't for well. in that all, QX delivered First results excited

as would be of terms is still know think tariffs, information would about I the likely so don't I and we categories that timing known, slightly the In impacted. say that the more

negligible So But as we very more. still well. in have we Vertical the situation like learned or perspective, a lot you to have a be small said, navigated XXXX, XXXX effectively back of -- brands not very, look have much if amount from even supply you as well as actually exposure into because very Canada. or chain, diversified Mexico exposure we both of there's our an China

positioned we for feel that. well we are So

national brand a indicated, vendors. Lauren like then And we have strong with partnership very our

national our well. is as brand in to learned, that as vendors with partnership more we'll continue So navigate close

navigated be is follow again XXXX, how of as XXXX, playbook learned. the this if we in kind that look Overall, will back will more you that to here

Operator

comes Morgan next line of with Stanley. Gutman the question Simeon from Your

Simeon Gutman

My on on a P&L. first inventory question and the then is follow-up

You spread and the the gave prior around in the you color similar inventory mentioned quarter. factors

expect. So we what know to

My year? the slower fourth early temperatures of to And the of is affect the quarter? by you'll next any are where start versus you'd the expect end of tracking expect how cold you you where be year to end part question to in be the does

Lauren Hobart

Yes, Simeon. in investment to you want the Thanks, inventory. that we've glad asked, I inventory discuss the -- I'm made

that key Playoff like a we invest highly course license quarter things quarter, the expansion. like We with things items, this that have the key inventory with assortment. NCAA things like with quarters fleece, now conscious the the our the brands, made And just complete over ended of to mentioned several in is differentiated opportunity decision footwear, I

don't we it. We're strategic inventory so the and very peanut surgical And butter about across spread the categories.

of of or the to this fleece opportunities broken some one last going is color into some of Christmas season items, things which meant and address the that of Christmas, our days before that. have were is We sometimes and we X leading like that exciting QX, around holiday like inventory Nike into size on key right say, for

with our be out we spring in warmer even feel transition holiday earlier. will we have addressing and climates also an into inventory. we the like merchandise of So that weather our opportunity And to

accelerated we've that. of So some

XXXX results quarter and So the and these -- should many see life of the of back we have these half products into the in XXXX. will into

confident, very that we guidance. are we our you So just saw and increased

implied in QX increased guidance comp well. as has Our

So we're pleased. very

Navdeep Gupta

you on right And Simeon, majority part let said QX. me vast Lauren holiday us. with just build ahead line I expectation. is little in colder season what is that is And weather the very the selling The say the of bit of still out impact, would the a early our called of on inventory weather

of feel the quality we inventory. good So really about the

We really the significantly. It's also be that called levels continue actually down out clearance to well managed.

based key excited expectations composition inventory inventory, categories. about really the QX well. that comp the And we in raised full our positioned as expectation So our overall, that the year on and how is of well confidence,

Simeon Gutman

on Or gotten I talked SG&A? forward? Okay. should margin P&L should EBIT to fourth happening is should growth House what's the there's thinking we've higher with margin into costs, of expect movement and P&L. SG&A gross it Sport years. expenses up? discussion on level lever quarter Or should we in individual expect dollar about the do the you we go beyond, margins SG&A? because is meaning -- know dollar offset other now of versus going The growth. How whether or of we margin question think about My don't we've a it's a I follow-up --

Navdeep Gupta

we year in guidance And we'll that quarter, maybe Yes. issued. have bit a for with start I'll providing be another further outlook the a little of XXXX. full Simeon,

So posted let's guidance issued. well start with the as have have the we as results that we that

So merch midpoint And expand the And approximately we at at which have -- well. comp more margin and be comp issued. first the top that the indicated, points is expectation the a as guidance, growth all, of will X.X% comp a growth year-over-year midpoint be posted that last excited X%, X.X% on is couldn't we our like the we have our will of about basis that guidance our on of basis XX you year. year-to-date

we effect and in thinking in and it SG&A. that really that line to improvement. to are and we better play is and XXXX ourselves in our the SG&A margin be continue business the driving way to seeing year strong gross make top are said this to out, strong momentum focus line drive driving leveraging So position top margin expansion, even driving strategic between are and line beyond. about for bottom the we're There will you the takes strong And strong investments puts and as

our find Lauren members indicated which we serve the our team one is the store that that allowing and RFID in technologies have implemented, of quickly athlete. stores, to product

As footwear, are athlete. and which will drive we returns to you of in imagine, to product as service examples beyond. the it's and we and be locate those that can quickly are believe the able investments the And to long-term really look we that making, apparel 'XX important

summary, in top and look continue what the to of is little us would bit strong I margin line profitability but and an between to interplay improvement, drive a a SG&A. say to strong So

Operator

of Your Oppenheimer. Brian Nagel next question comes line from the with

Brian Nagel

Congrats again, another quarter. great

the Sport. So of comments, my success prepared you new of question, including ongoing talked the first concepts, the talked we -- about House in

importantly remind the balance but guess more we is the plan us 'XX, rollout as just I probably you the question maybe of can 'XX. So into through --

growth there's recognizing been And sales these the rollout some at impacting this noise now how -- how is shift. are sales around calendar DICK'S, growth with then store comp

Lauren Hobart

will many had is concept of continues longer update your of community an of part come. The the absolutely when X Sport. weeks. embracing the But go questions. the them, when to couple House start on terrific. incredibly of opened We're House of answer of Navdeep more general to time in in more is The athletes past they the be Sport and our is and experience They're I'll some impact Brian. they a more visit they community House delighting long-term We detailed have Thanks, in -- strategy. of opportunity seeing distances. just spending they drive the just impactful with an just We open athletes. just Sport

we're Importantly, their in that get to where whole in bring particular, we Sport, this about very spaces can and vendor our House brand in also life tell seeing excited fact they the partners a the of can incredible story. brand collab

to Last is that mall, we that thing a the obviously is mall, to to which noticing incredible for are say we operators estate a real -- I would better long-term there's put of and it's allowing traffic when incredible we us get House landlords into opportunities. get even also a but everybody, access increases just mall Sport win-win --

are So we excited. really

answer I'll more it of some turn to specific Navdeep to your questions.

Navdeep Gupta

some Brian, the count just to give information. of Yes,

year House by and of XX year XX this XXXX finished expectations in locations XX Sport of to with with to last of plan approximately long-term we we Sport the to we finish another of open So expect XX Sport XXXX. with is have House indicated House location XXX location. What we locations

been. they remodel In of to majority remain Sport And definition, locations. of House existing be our have the the openings comp relocation will continue as of or will terms in these comp vast the of

seeing total you're and of the not a the the come through difference between growth. much that's so that And sales reason comp

year will Sport far example, as location, Center few but We open locations well, those between. brand-new of location new a do this was for be and selectively House Prudential

look well. within composition of our the of vast we House count Sport locations So future majority to as be as these ] [ will

Brian Nagel

Got it.

I very then follow-up X to guidance, it that. [ helpful. question, near a Okay. I And can so That's parts appreciate ] maybe my know I it's anyway. guess, make this all I regard with follow-up

So that. -- sorry about

fourth that straight you the in full lifted QX, projections up the year. Are the So you internal question, for guidance look, from guidance for of taking first quarter? part beat you you your are --

and and And talked and regard one the have I to How was impact then of mentioned I shortened others I you of mean, of I others and season. that? about -- lot of guess, holiday know lot thinking your with I saw a holiday last stores, week in the signage a you about are already.

what Thanksgiving the you about doing kind just you're But out how impacts Christmas. like between from can and you are thinking how what pull seems it fewer of this forward. So here could -- play days

Lauren Hobart

Yes. Brian. Thanks,

your the reflecting QX beat strategies momentum to we in mentioned. So in our we that I confidence the long-term guidance and estimates did have our all the both business lift is and and that point, the that

our the amazing. your way. We're super point out stores, that would I about looking point, excited just by holiday, to are

Our online store looks amazing.

with weeks Watt, is few kicked pumped. as our extremely the marketing buzz. Our like And in just ago I remarks, an prepared -- off a J.J. team incredible driving mentioned is

about we're QX. So excited

talk waking We then want uncertain many people we've did into prepared years talking started. oh, fewer my buying. and given They has to There's is my fewer, to environment gosh, of coming. holiday the two factors, be macroeconomic for weeks hearing now days. people are appropriately we've about to early I'm the accelerate Friday just the and being holiday the also it. for in life even and one November Christmas X up have and Black quickly expanded been gift cautious the this, But how,

ready. Our stores online ready, our are stores

are So it, about just being we excited appropriately cautious.

what would add? Navdeep, you

Navdeep Gupta

Yes.

on Brian, build, said. what to Lauren Just

have results. the we we comp for delivered indicated our In as QX, raised both So today, full expectations we strong EPS year. and really

we our opportunity in definitely year full terms that to to that look translate expectations. of So beat

that fact well top how QX, Lauren -- our we strongly of you well for and season. terms is, our macroeconomic that as uncertainties we are indicated, have inventory imagine, driven selling expectations what we against as can calendar the raised about. But position that website talked holiday balancing are for ready as the our the by are holiday QX we feel short In stores we how have our the line

the that as of to And full well. have to SG&A composition have that the EPS opportunities raised for advantage of opportunities position a we we our XXXX. In see little by year within expectations, offset business investment you we that, being the prior versus to expectations, continue take the bit raised better the see of margins the terms

So well have QX the beyond. as overall, really we as confidence about for excited and the we posted results

Operator

Your next the from question comes Sachs. Kate with of line Goldman McShane

Katharine McShane

Because it's big And come times up with for that and around a the I say of would overlaps has that's commentary of a couple you, you much your product know been how driver differentiation, growth today? how with changed? retailers

Lauren Hobart

Kate, question. thanks for the

We across leaning look been we into have our highly differentiation the board. footwear, if products. you have at really differentiated And

If sports you exclusives team things hardline even across that. there's even we the businesses, look at exclusives like in our some have and of

we -- a are we differentiated highly So product. have

It We and that core does of be surgical continues sort of promotional less a participate and how to more it where just and market be us. our in when, amount vulnerable would down, activity. strategy up overlap, allow to exact Navdeep much to products release don't us we you? We're entire any the the going but

Navdeep Gupta

Kate. just vertical on portfolio to And excited Yes. brands. about in that and our that other have what are the is our said, we Lauren build we really assortment

overall basket-building opportunity continue you athletes provide with vertical those as brands brands, CALIA, brand, these the that our DSG, but we our athletes. an see only vertical our assortment, so we and of not to resonating our to think that well opportunity when So VRST, especially flagship to differentiate are

and products as our have of as key team having driving that stores is these top momentum both of in been assortment our no, in-depth in creating doing line the well the the presentation curated margin we is these that by available and merchandising driven driver work yes, So online. gains

Katharine McShane

on what a was what of of Okay. that we've ticket seems follow-up sold you same How quarter. is versus SKU QX? seen. just the the much question bit ticket It drivers inflation in of little like than more then a And during increased mix

Navdeep Gupta

goes the to It I Kate, we the by drivers been driven say consistent the her Lauren It ticket. may that with talking product called differentiated your of remarks, back that we it's Yes. question. kind have pretty to to prior product what differentiated pressures about what the be is access there. of is curated have out this and in exposed and not out promotional would that

get we helps margin a ticket. the us drive a So higher as on able well recovery are to that better and also

product So and it's, differentiated again, we mix, the opportunity that pricing the see.

Operator

the of line Robby America. comes question next Bank Ohmes of with from Your

Robert Ohmes

just more Congrats, quicker about X long-term remind you opportunity little us can guys questions. the us remind a there? One, guys. Actually, talk GameChanger, or the flow-through

And coming down is, a color see for second the one some give that then House the little brand partnerships key on you pike more can Sport? of new you the of

Lauren Hobart

grow your Robby. Thanks, business youth a those We're for highly space. you we to It with $XXX about love so are now excited the in forecasting sport just it's GameChanger. I profitable software-as-a-subscription but kids, And to dominate for do well. and continues continues engage really model. it who and know for this year The it, GameChanger million you of in revenue GameChanger tech

app more -- moving other which some sports. over past they're every users, is was This X.X averaging single which business those the video last were active increase million and enabling million users unique And opportunities, is approximately open video X XX%. had for basketball The quarter, GameChanger, streaming GameChanger more streamed we and a day. into in year. increased to XX% active And games video us increases that

in bigger we So and bats come the weekend from past just so our athletes lab where demo an and ratings well to able just and call become it's a the brand aligned. of ecosystem. part give were country exciting all are bat what DICK'S so strategic the feel from standpoint, this we in across that and even We co-presented to actually Florida GameChanger like see

Navdeep Gupta

just me not thanks the and your little mean capability a said on the it holistically. in what have, on the that build the combined Robby, the excitement for we GameChanger terms can and about let but Lauren platform DICK'S what platform, comments of bit at for athletes

it's to of So $XXX at CAGR growing business like the XXXX several Lauren been we this expect has that that XX% for last the business size of and business we about have sales million be year, the to CAGR this each indicated, of indicated, and XX% in years.

So line is to business. momentum excited couldn't about of the the able size of business, that team drive the be more the well the as top the profitability as

extremely imagine, As you business SaaS is our profitable. can

So capabilities. our a complement it's to great

is long-term ripe is really with or we probably terms opportunity the -- best million can you youth of growth that out landscape And $XXX in the that and into is that the opportunity, dollars. this sports the the there for landscape imagine, as tool believe tech youth future. feel In tech marketplace, continued multibillion we

Lauren, the you to brand opportunities? want address

Lauren Hobart

Thank yes. Oh, you.

question. second Your

So for of because we Sport us been key been fantastic and that able build. expand have to partnerships the brand also House of has

our even bring the to spaces, being lacrosse brand there's brand their presentation. we've collab GOAT, partnerships an but exciting now, we're have brands incredible brands. and to in very also our had that about. just excited Things So loved with life Right new holiday emerging able like national

Our vertical collab demoed the brands are being space. in

came space. to have continue Movement collab People our Free through -- We in

chain. are brands translated that through lot in and brand into big have partners have us Sport come through House the a of transferring entire there's So that of that for

Operator

Cowen. comes next Kernan the of Your John with question from TD line

John Kernan

comps, The XX% X had good X-wall in another this $XX you've Field the the Sport House the on open of store X how this on levels in omnichannel this productivity or the in contribute year to -- then omnichannel year do into high of would the million year EBITDA margin to XX, sales How as you of with quarter. expect the trend in Slide these these $XX to model for Congrats X? in House do and now. sales calls margin. this I imagine stores and the does deck How EBIT several DICK'S Navdeep, earnings mature? slide X and million X productivity. and on House very Sport trend

Navdeep Gupta

that year are stores Yes, these John, well calls come as their And of the comp in actually the and year to We this great in actually and as are have excited stores more build. trajectory well on both one talked House full group be year the the Field in year opening strongly select could Sport in in about third second but have second the as excitement These how year are that as about only that not the some seeing X. comp the the not trajectory because in in we seeing well. we House, X, positively question. prior we of stores continues stores

are kind market. store, or because those that our wall the we is within way it local of that team what experiences engage the with within the to Two, engage and able center different to community the all climbing athletes the members a that of learns a within within a are store, the the on in point deeper is bit Whether become community of is field the learn, slightly the the store. how the engagement of little with

about excited the are we So see trajectory in X. we year that

well the continue as we'll more right But learn we based we year see seen, excited trends are the we overall X. as So now, the on to opportunity provide in more. about that we results that have color as

John Kernan

That's is guess piece on just my the helpful. I the business. follow-up of softlines

in back driver many And outlook dating footwear for decks to can business they're footwear a more key many several of now, the year. they part talk footwear Can And doors that the now? quarters it's outlook the for about in think comps last business, to place? be in you How I HOKA? Can are decks? QX? put in how the you what been big on of for in additionally already

Navdeep Gupta

Yes.

core at back more I'll First of start maybe category. all, the

have those said are and team and on golf. are athletic there So apparel, we our footwear, where focused are core sports business we categories driving athletic X

that the on service of premium but last store well full deck, our So these have just work we as our over as chain not well service the focus attention call the And we importantly, -- the puts we are stores. and are how closely delivered athletic have that have the share look footwear those the as footwear in categories in drives that, have or just assortment stores assortment to results well. When when the at the organization, works the our that not that most our amount our in and we both that that stores, performance come in capability we on engine available to to in store, that us as that categories merchandising look the to in Cleats levels footwear you several categories. from really the footwear growth supply those chain. provides have our it and we done, core our our differentiate we you in it allowing well of at quarters, continuing lifestyle House continues team strong gain comes the as The that is team it exact with the on -- is marketplace footwear, is

about apparel. in the So to in footwear both we really opportunity be continue in excited and

bit on as On excited have Balance HOKA stores we that chain. well. brand available service XX% Just footwear expand these into result we of to the so assortment to premium and itself, little we continue about and brand our further, we our opportunities see On, deeper Nike, full a New HOKA, are have stores in today add and have to the deck,

Operator

from next with (sic) [ comes ]. Christopher Morgan question Our Horvers of line Stanley the JPMorgan

Jolie Wasserman

This is Christopher for on Jolie Horvers. Wasserman

any better is normalized updated full shrink relative about XQ. Our in that little your you spoke a is for the you if now, in bit to also since out played and came levels? know And expected, was how were what I September, view your from question XXXX right in on year, it to margin thinking different what merch than first expectations? XQ

Navdeep Gupta

results I'll QX and with talk start me then to let QX. So

was assortment and by XX increased the QX year-over-year the So QX that gross merch a increased the XX margin and basis -- margin product points. points basis sorry, we basis -- QX The quality had driven increase and mix our primarily of the in on the merch said, available. profit like we

all quarter. fourth our So expectation the quarter. margin promotional now, merch our plays But is what expectation we'll look our fourth will QX, in merch is as landscape that see how the have out margin, of right to we with in it we guided increase again

is In line QX our the on in in flat relatively QX. for to terms right in year-over-year QX. for came a shrink, slightly shrink basis to our now, of better in expectations with be the And shrink expectation results --

Jolie Wasserman

you And earlier fleece, if quarter? weather cadence bit but I question, throughout we know the you to Got with follow-up weather spoke could little the with were our call warm to wondering it. more the speak in a the election, hurricanes,

Lauren Hobart

Yes.

we season. So a we strong had said back-to-school really

last the So We have liked of it excited have was comps, but was It in team material we didn't remain on quarter, impact might in we footwear, part our obviously that the had sports. warmer early in growth apparel, great very QX. than the a and quarter. about

Jolie Wasserman

pullback? election An

Lauren Hobart

in nothing meaningful. good -- Yes, it's we country certainty for -- didn't think we're good that It's material and quarter. fine consumer just We're the seeing seeing there's some I see the was anything people after the that.

Operator

question comes with of Lasser Michael from the Your next UBS. line

Michael Lasser

As coming a that because you be of you year to especially this look merchandise and outside label further pretty merch to might into margin expand? off would opportunities will And what expect you'll expansion merch XXXX, year. drive management to margin have your margin private of year, continue strong inventory next you

Navdeep Gupta

margin, The frankly, is, next the going to about opportunity And we'll Michael, the to our big quarter. merch think in and have specific X few an more pretty give the consistently thanks a opportunity for grow that to XXXX that quite merch we the see years players again, margin. said guidance way the question. back last in we

differentiated to as to recent we future. the the the as be the well of is in that able that that selling results continues driver, control look just not quality assortment. opportunity, a full foremost have and we big and access to First posted the The price assortment, the being have years we on the

be done and have models level to basis really surgical pricing optimize the And our athletes. offerings able the and our be to us to work the continue and they that we'll of capability of that's right that promotions. one-on-one in -- terms that continue offer allows and a pricing have second, to developed to to the The promotion our to pricing team our leverage, price

Vertical thing the the national vertical brands. out that basis opportunity points we to see XXX the with carry you to is And higher last brands called brands. of compared the margins XXX

we VRST, DSG, the drive brands, to into our able are we to especially future. able to more penetration as have apparel there opportunity the better be with even been the see that we as flagship So go CALIA, we do

in we right biggest which is call, The talked the around unknown earlier now, tariffs.

the at of So merch level for margin. call details we'll provide earnings next appropriate 'XX

Michael Lasser

created about just have impact the and that. headwind. concerned margin up the year-over-year. might have calendar question billion given Okay. timing market is that past, may under more There be My follow-up $X.X your is inventory running the merchandise In been would some on

seems to Gone! through clear Going, their it able engine Going, better Now to a like DICK'S chain. be out has that

up quarter, So, merch risk you've heavy you I a, you the that create only -- is basis there could so year is about said position margins will that less quarter? average, in points be each your margin fourth risk a stuck And On fourth inventory some inventory to in an the expect believe guidance you up merchandise know up I XX in been quarter, far. the for XX but be points. basis

does quarter, going in work? expansion the inventory the margin to position? drive how merch what's And especially fourth math in So, a, light that of b, the

Lauren Hobart

Michael. Thanks, Yes.

really want become we key and inventory, as mentioned. question be in and your going you in key don't and I going fact create not I surgical concerned strategic risk, are to is and think are well in that we the to things really how have items, categories we taken, a we're that heavy think are about to clear markdown toxic invested

right We athletes online. lean having is into part key our increase for stuff we inventory really have our guided, margin come of a store and this are into QX when as a they you strategy confident the our really said, and to to

Navdeep Gupta

Yes, build Michael, Lauren on I'll what said.

we basis expansion at the So out is you called have EBT that the points the that midpoint. XX

talked as that shift in that calendar $XXX we'll unfavorable well have prepared the impact fourth about. comments, our the about And my and tune an So year mind that you're a XXrd couple the things we have as sales as thinking this included is of in keep week to last to of -- driven by quarter, million. that will was to

last under some higher is shared by shift QX hopefully, in going that you expenses in the QX to of And expenses timing preopening are expectations driven primarily the be our our have is other we And year. our The of as store that preopening in slightly that saw than well. new came openings.

Sport million X called of at the a bit profitability Lauren of House impact a well little QX shift $XXX improvement the you the so impact. of consider we QX, of right the out new on locations that as opened there's of unfavorable impact preopening in when As as beginning basis an

expected, And there's considering level the would have expect in we then calendar. the included last of can our call thing the and macro holiday shorter guidance caution you some as that is, I out

of combination in are quarter. or a those it's you seeing X things the fourth that So X impact profitability

Operator

Your next the question Paul comes from line Citigroup. with Lejuez of

Kelly Crago

you upside Paul. you elaborate this sales plan, continue key Kelly around see incentive just quantify materialize in to ahead on of your the Could initiatives? is SG&A on the invest SG&A.? you to more Any for on some of margin chance year? of expect and If This gross higher impact you should comp philosophy we can

within comp margin SG&A we and 'XX of to sort beyond. need gross as and could F to an give fixed of look leverage you idea us costs what And you

Navdeep Gupta

Yes. Kelly, couple of think there a there in that. were questions I

is line and think that the make our in top investments long-term the bottom drive on the So made. opportunity capabilities we and we'll in, continue or investment growth, House be need where to I philosophy company position start the decisions with I of Sport company will whether for philosophy. the line maybe to to we see technology Like appropriate opportunities it said investment growth before, see for is we

near on be have talked in distribution center that need future. of the example, made for the we opening investments about side, to the margin Sometimes the

or margin will SG&A. that side within which the the investments, technology sit on So an the predominantly be investment

would year, guidance in look for improvement. I In bottom us top terms our the can line of the or expectations the and next you quarter, future provide to line 'XX the SG&A to we'll drive the for continue -- say outlook for to the but

leverage needed depend where to and the see. SG&A, of In all levels terms we on will of the what it comp investments

I drive bottom give improvement. top if to know is I and don't I a that. say line continuing to But line the So would with want for specific the the focus us associated number

Kelly Crago

sort And you that total meaning follow to I expect just openings new Sport of Field up, we does include locations should another think that said store 'XX, House 'XX, open of House the plan XX in is in F the you to concept?

in you on you the more you you Specifically, do just existing remodels level locations? productivity the versus of see relocations remodels color do 'XX? give could us lift lift sort of of any do And -- what to expect after color what a remodel. -- And on

Navdeep Gupta

address Okay. of see them. Kelly, there were can I I'll a number of if all questions there and

and So Field well, open first openings There the as some of store openings an will to in are expect store all, Galaxy Sport and we'll the of the House just we additional expectations XXXX. that, provide XX Golf be of store opening count in locations. new count, the of openings. top House terms of House XX Sport On

want However, to remodel. locations, I House of House majority locations be that before will Sport of relocation reiterate that especially of locations, I Sport Field as said something as vast the well House or again the

store count new of lot well. happening as we a XXXX to see won't look you as So

openings. in results driven a the If provided by store store are the count square X% or we XXXX, basis, for increase have at footage you seeing on look the only that we new a year-over-year

share outlook we provide our openings. for we'll So more store the count new details as 'XX

Operator

come will with Kleber Your final from Baird. question Justin

Justin Kleber

a play not given question in mentioned the third quarter? that exit the in to was. decline did in transaction softer softer. role October that I how that's end the surprising that guess, quarter But prior your of response a tail warm rate being the you experienced you Lauren,

Lauren Hobart

was question -- up. had We No, asking thank a for great to you want clear quarter. a I the month We because quarter. had that every great

impact in And that material little so is did saw play not quarter bit mentioning in half. overall maybe back we and a it of I was the weather the all a

the that of we don't just you I had take dip So to the end a quarter. away tail want in

Navdeep Gupta

that to we Lauren Yes, weather have. just categories takes and to what the puts within with add our the Justin, of and said, you portfolio see

categories, some favorable So in categories of -- temperatures. the see softer also or if the do what you also is you of in the trends in cold weather that performance see kind moderate saw the well a you

the business the So back half. golf for our example, exceeded expectations actually in

past. transitions the we able to do portfolio we the the month-over-month from but navigate So interplay weather really us this allows like insulate is us the of impact, That products have. it we the to been it have categories, doesn't much that in better than reason these between the

Justin Kleber

the Sport, impactful Okay. Sport elements continued ask finding And House then House sense. to wanted House about in my given stores? what of That the follow-up most are I of is within Field makes just you strength of

Lauren Hobart

a question. Thanks. great Yes. It's

all As the we exciting our you're but Sport about entire pointing is strategy talked such portfolio. is it well out it's an cornerstone for concept, of to just and that reasons a doing of our House reposition so

And assortment such that better and like access what we a by doing of are and great things are is service, mean to the Sport of House product, things big that are so experiences. improved part

can House has a which a them foot but like All is lot of fit the that a presentation those XX,XXX-square Field looks version honestly of just standpoint, House things a of a House are it those concept, from Sport, to box. a into of elevated Sport, smaller translating we of visual aspects into degree our

through our But translating also organization. it's entire

you're product, see going service, elevating like So to elevated things the that.

House As the Sports impact might a House stores. our of longer just looking we at Sport has portfolio, entire you of think reposition than

Operator

I Executive for will Chief over back comments. the Lauren now closing to Officer, turn conference Hobart,

Lauren Hobart

your in holiday. the a everyone stores thank interest for week. see DICK'S you hope Well, all you Thanks. to weekend. this And holiday excited I'm happy Sporting Have in to has a Okay. out great Goods. team, I our

Operator

may Thank And conference and now your for call. today's this disconnect. participation, you concludes you

DICK'S Sporting Goods (DKS) 26 Nov 242025 Q3 Earnings call transcript