DICK’S Sporting Goods Inc (NYSE:DKS) stock rose 2.31% (As on November 26, 11:22:41 AM UTC-4, Source: Google Finance) after the company reported third-quarter earnings that fell short of analyst expectations, despite raising its full-year outlook for its core business. The company is confident about the holiday season, citing strong product offerings and consumer focus on sports, which led to raised guidance for Q4. The company has opened 13 new House of Sport locations and 6 new DICK’S Field House locations during the third quarter

DKS in the third quarter of FY25 has reported the adjusted earnings per share of $2.07, missing the analysts’ estimates for the adjusted earnings per share of $2.71. The company had reported the adjusted revenue of $4.17 billion in the third quarter of FY25, missing the analysts’ estimates for revenue of $4.43 billion. The results include the newly acquired Foot Locker business, which closed on September 8. For the DICK’S business alone, comparable sales increased 5.7% YoY, driven by increases in both average ticket and transactions.

Additionally, the company has declared a quarterly dividend in the amount of $1.2125 per share on the Company’s common stock and Class B common stock. The dividend is payable in cash on December 26, 2025 to stockholders of record at the close of business on December 12, 2025.

Despite the earnings miss, the company raised its full-year 2025 outlook for the DICK’S business, now expecting comparable sales growth of 3.5% to 4.0%, up from previous guidance of 2.0% to 3.5%. It also increased its earnings forecast for the DICK’S business to $14.25-$14.55 per share, compared to $13.90-$14.50 previously.

The company noted it has initiated a review of unproductive assets at Foot Locker, including clearing inventory and closing underperforming stores, which along with merger costs is expected to result in future pre-tax charges of $500 to $750 million.

For the Foot Locker business, the company expects Q4 2025 gross margin to be down 1,000 to 1,500 basis points compared to last year, with comparable sales projected to decline mid- to high-single digits. The focus is on clearing unproductive inventory to make room for exciting new assortments, positioning Foot Locker for a fresh start in 2026. The focus is on introducing fresh, innovative products that will sell at full price, with no significant change anticipated in the overall promotional environment.