Dick’s Sporting Goods is entering a new growth phase, with the recent acquisition of Foot Locker and continued core business strength expected to accelerate earnings over the next several years.
The deal establishes Dick’s as a more formidable global player in athletic retail while reducing integration risk by allowing Foot Locker to operate independently. It also enhances the company’s relationship with Nike, eliminating concerns about weaker product allocations that had previously weighed on Foot Locker.
With Dick’s holding elevated partner status, Foot Locker should now have greater access to in-demand Nike products, bolstering its competitive position.
At the same time, Dick’s is building out its GameChanger platform, a youth sports app that provides livestreaming, scheduling, and scorekeeping.
With 5.5 million monthly active users, GameChanger has quickly become a highly profitable SaaS-style business, expected to generate about $150 million in revenue this year while growing 30–40% annually on recurring subscriptions.
Its high-margin profile and valuable first-party data make it a powerful long-term earnings driver, comparable to retail media networks such as Walmart Connect.
Meanwhile, the core business continues to perform well. Comparable sales growth rose 5% year over year in Q2 2025, the sixth consecutive quarter above 4%.
On a two-year stacked basis, comps have remained above 9% for three straight quarters, and average ticket size increased 4.1%, underscoring healthy demand.
The company reaffirmed guidance of 2%–3.5% comp growth and adjusted EPS of $13.90–$14.50 for FY25, with analysts expecting EPS growth to accelerate to the high single digits by FY28.
If adjusted EPS reaches roughly $17.70 by that time and the stock returns to its historic multiple of 15x forward earnings, shares could trade near $266.
The key risk lies in execution, as turning around Foot Locker will demand significant resources and could divert attention from the stronger core business if challenges arise.
Even so, the combination of the Foot Locker acquisition, the rapid scaling of GameChanger, and steady core momentum provides multiple catalysts that support a bullish outlook for Dick’s Sporting Goods.
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