Foot Locker returns to growth but weighs on Dick's Sporting Goods as earnings miss

Foot Locker is slowly getting back to growth, but the costly turnaround of the legacy sneaker store is still weighing on its parent company Dick's Sporting Goods ' bottom line, as the company posted an earnings miss on Wednesday. In the three months ended May 2, Dick's incurred $96.5 million in charges related to the acquisition. That includes $53.8 million for merger and acquisition costs like severance and store closings, and $42.7 million to clear through sale inventory. Those expenses contributed to a miss on Dick's bottom line, as top line results exceeded expectations. Meanwhile, Foot Locker eked out comparable sales growth of 0.6%, the first time the metric rose since the end of fiscal 2024, while Dick's namesake stores saw comparable sales climb 6%, leading to a combined figure of 4.1% growth. At Foot Locker U.S., where Dick's has focused much of its turnaround attention, comparable sales grew 6.4%. Here's how the sporting goods store did in its first fiscal quarter compared with what Wall Street was anticipating, based on a survey of analysts by LSEG: Earnings per share: $2.90 adjusted vs. $2.92 expected Revenue: $5.17 billion vs. $5.09 billion expected The company's shares fell nearly 5% in premarket trading. During the quarter, Dick's saw net income of $319.82 million, or $3.54 per share, compared with $264.29 million, or $3.24 per share, a year earlier. Adjusting for items like acquisition costs and litigation, Dick's earned $2.90 per share. …