DICK'S Sporting Goods

Foot Locker added $3.1B of revenue; inventory at 155 days and SG&A at 25.2% of revenue are the largest observed gaps.

On August 25, 2026, DICK'S cut its full-year profit guidance after the newly acquired Foot Locker business posted a second-quarter operating loss, while the core DICK'S business grew comparable sales 4.9%.

Source

Point-in-time analysis. The report was generated on the run date shown below from the filing named, and the news context reflects reporting available on that date. This page is not updated as events move on.

Input

Form 10-K, fiscal year ended January 31, 2026 (fiscal 2025)

Processing time

minutes

Output

page PDF report and Excel model

Run date

September 16, 2026

Business health score

/ 100

Addressable estimate

$454.9M addressable estimate (observed gap $785.4M)

Revenue

$17,215M (FY2025)

Operating margin

6.4%

Data quality

100

Summary

DICK'S Sporting Goods reported fiscal 2025 revenue of $17,215M, up 28.1%, with $3.1B of that from Foot Locker, acquired in September 2025. The core business grew comparable sales 4.5%. Reported operating margin of 6.4% and net margin of 4.9% sit below the durables medians of 8% and 5%, after $390M of exceptional charges tied to the acquisition, of which $217.9M were inventory write-downs.

Inventory is the largest observed gap. Days inventory outstanding of 155 against a 100-day median and turns of 2.35x against 4.5x imply $2,345M of excess stock; releasing it would be a one-time cash event, and the report sizes the annual carrying benefit at $234.5M. Part of the excess is Foot Locker's legacy position consolidated at year end, which the income statement does not yet reflect in full.

SG&A at 25.2% of revenue against a 22% median is a 3.2-point gap worth $550.9M; the report treats $220.4M as addressable and labels it an estimate, since the peer set is consumer durables rather than sporting-goods retail. The first 100-day move is a full inventory audit across 3,195 locations with a daily ageing dashboard. The questions for management centre on Fast Break conversion economics, which of the FY2025 charges recur, and the concentration of purchasing in Nike at 31% of sales.

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Top three value levers

Inventory turnover improvement (working capital). Annual carrying benefit $234.5M on a one-time cash release of $2,345M. Medium complexity, 12 months.

SG&A rationalization and store labor optimization. Addressable estimate $220.4M (observed gap $550.9M). High complexity, 18 months.

Inventory velocity and supply chain synchronization (DIO reduction). A diagnostic view of the same inventory position (DIO 155 days against a 100-day median); not added to the total.

Peer benchmark

Revenue grew 28.1% to $17,215M, with the September 2025 Foot Locker acquisition contributing $3.1B; core DICK'S comparable sales grew 4.5%. Gross margin of 32.9% is above the durables median of 30%. Operating margin of 6.4% and net margin of 4.9% are below their medians of 8% and 5%. Days inventory outstanding of 155 against 100 is a significant underperformance.

First action in the 100-day plan

Conduct an inventory audit across all 3,195 DICK'S and Foot Locker locations to identify aged, slow-moving and duplicate SKUs, and establish a daily inventory-ageing dashboard.

Not covered by this diagnostic:

The year-end balance sheet consolidates all of Foot Locker while the income statement carries about five months of it, so inventory days and asset turnover are overstated for the combined business. The peer set is consumer durables manufacturers, not sporting-goods retailers, so the SG&A comparison is indicative. The August 2026 guidance reduction is post-period and appears from market intelligence only.

This analysis is generated by the ValueChaser platform from the company's public Form 10-K. It is not investment advice, does not reflect any non-public information and is not affiliated with or endorsed by the company. Figures are as computed by the platform from the filing indicated above.

DICK'S Sporting Goods

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