Dick’s Sporting Goods lifts outlook as Foot Locker deal approaches

Dick’s Sporting Goods Inc. raised its full-year outlook, a signal of resilient consumer demand as the retailer prepares to acquire sneaker chain Foot Locker Inc.

The company now projects comparable sales growth of between 2% and 3.5% for the year, with earnings per share ranging from $13.90 to $14.50, which is above its previous forecast. The outlook accounts for the impact of existing tariffs, Dick’s said.

Chief Executive Officer Lauren Hobart has focused on upgrading the retailer’s store network by introducing more experiential formats and enhancing e-commerce capabilities. The latest results show these investments are resonating with shoppers. Comparable sales rose 5% in the quarter ended Aug. 2, surpassing analyst expectations.

Dick’s plans to finalize its $2.4 billion acquisition of Foot Locker in September. The deal brings together two retailers with different business models, adding about 2,400 mostly mall-based stores to Dick’s existing network of around 800 large-format sporting goods locations.

Hobart has not yet outlined a long-term strategy for Foot Locker, although Dick’s has stated that it intends to operate the chain as a separate business unit.

In May, Dick’s Chairman Ed Stack sought to reassure investors about the acquisition, saying Foot Locker will help the company reach new customers and that executives will improve operations at the underperforming retailer.

Shares of Dick’s rose 0.6% in pre-market trading at 7:17 a.m. Thursday in New York. The stock is down 1.2% so far this year through Wednesday’s close, compared with a 10% gain for the S&P 500 Index.