"We're proud of our second quarter performance in the DICK'S Business, where we delivered comp sales growth of 4.9% and gained market share despite growing pressure across portions of the athletic footwear and apparel marketplace. Our Q2 results reflect the strength of our athlete-focused strategy, broad differentiated assortment, strong brand partnerships and continued focus on profitable growth opportunities such as House of Sport, GameChanger and DICK'S Media Network. We invested significantly around the FIFA World Cup, and our team delivered outstanding results. While we are taking a more cautious view of the balance of the year, we remain highly confident in the strength of the DICK'S Business and our long-term opportunity at Foot Locker."

^(A)

Results described by management for the "DICK'S Business" represent the existing DICK'S Sporting Goods operations, which includes the DICK'S Sporting Goods, Golf Galaxy, Going Going Gone! and Public Lands banners, as well as GameChanger. The results for the "Foot Locker Business" refer to our acquired operations, including the Foot Locker, Kids Foot Locker, Champs Sports, WSS and atmos banners. Profitability for the DICK'S and Foot Locker Businesses represents segment profit, or operating income, for a respective segment.

^(B)

For additional information, see the section of this release titled "Non-GAAP Financial Measures" and GAAP to non-GAAP reconciliations included in tables later in this release under the heading "GAAP to Non-GAAP Reconciliations."

^(C)

Comparable sales for the Foot Locker Business are represented on a proforma basis and are calculated as if Foot Locker had been acquired at the beginning of the periods presented. Foot Locker will not be included in quarterly comparable sales until the fourth quarter of fiscal 2026 and full year comparable sales in fiscal 2027.

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES 

SUPPLEMENTAL FINANCIAL INFORMATION - UNAUDITED

Information below represents consolidated supplemental financial results for the 13 and 26 weeks ended August 1, 2026, which includes the DICK'S and Foot Locker Businesses. Prior period results reflect the DICK'S Business on a stand-alone basis.

Second Quarter Consolidated Operating Results

(in millions, except percentage and per share data)

13 Weeks Ended

Change ⁽⁹⁾

August 1, 2026

August 2, 2025

GAAP

Net sales

$

5,587

$

3,647

$

1,940

53.2 %

Operating income (% of net sales) ⁽¹⁾

7.9 %

12.4 %

(451) bps

Effective tax rate

28.0 %

25.2 %

286 bps

Net income

$

315

$

381

$

(66)

(17) %

Weighted average diluted shares outstanding ⁽²⁾

90

81

9

11 %

Earnings per diluted share ⁽²⁾

$

3.50

$

4.71

$

(1.21)

(26) %

Non-GAAP ⁽³⁾

Operating income (% of net sales) ⁽¹⁾

8.1 %

13.0 %

(491) bps

Effective tax rate

28.1 %

24.9 %

316 bps

Net income

$

319

$

355

$

(36)

(10) %

Earnings per diluted share ⁽²⁾

$

3.53

$

4.38

$

(0.85)

(19) %

Year-to-Date Consolidated Operating Results

 (in millions, except percentage and per share data)

26 Weeks Ended

Change ⁽⁹⁾

August 1, 2026

August 2, 2025

GAAP

Net sales

$

10,751

$

6,821

$

3,930

57.6 %

Operating income (% of net sales) ⁽¹⁾

8.3 %

12.0 %

(371) bps

Effective tax rate

28.2 %

24.7 %

349 bps

Net income

$

635

$

646

$

(10)

(2) %

Weighted average diluted shares outstanding ⁽²⁾

90

81

9

11 %

Earnings per diluted share ⁽²⁾

$

7.04

$

7.95

$

(0.91)

(11) %

Non-GAAP ⁽³⁾

Operating income (% of net sales) ⁽¹⁾

7.7 %

12.2 %

(451) bps

Effective tax rate

28.4 %

24.5 %

387 bps

Net income

$

581

$

629

$

(49)

(8) %

Earnings per diluted share ⁽²⁾

$

6.43

$

7.75

$

(1.32)

(17) %

Balance Sheet

(in millions)

As of

August 1, 2026

As of

August 2, 2025

$

Change ⁽⁹⁾

%

Change ⁽⁹⁾

Cash and cash equivalents

$

914

$

1,231

$

(317)

(26) %

Inventories, net ⁽⁴⁾

$

5,565

$

3,404

$

2,161

63 %

Long-term debt and financing lease obligations ⁽⁵⁾

$

1,906

$

1,485

$

422

28 %

Capital Allocation

(in millions)

26 Weeks Ended

$

Change ⁽⁹⁾

%

Change ⁽⁹⁾

August 1, 2026

August 2, 2025

Share repurchases ⁽⁶⁾

$

141

$

299

$

(157)

(53) %

Dividends paid ⁽⁷⁾

$

225

$

196

$

29

15 %

Gross capital expenditures ⁽⁸⁾

$

743

$

526

$

217

41 %

Net capital expenditures ^{(3) (8)}

$

614

$

455

$

159

35 %

⁽¹⁾

Also referred to by management as operating margin.

⁽²⁾

Current year weighted average diluted shares outstanding and earnings per diluted share include the dilutive effect of the 9.6 million shares issued in connection with the Foot Locker acquisition.

⁽³⁾

For additional information, see the section of this release titled "Non-GAAP Financial Measures" and GAAP to non-GAAP reconciliations included in tables later in this release under the heading "GAAP to Non-GAAP Reconciliations."

⁽⁴⁾

Inventories, net as of August 1, 2026 includes $3.6 billion for the DICK'S Business and $2.0 billion for the Foot Locker Business. Inventory increased 6% for the DICK'S Business as compared to August 2, 2025.

⁽⁵⁾

Current year balance includes $386.4 million of carrying value for senior notes due 2029 and $34.2 million for the long-term portion of financing lease obligations acquired in connection with the Foot Locker acquisition. The Company had no outstanding borrowings under its revolving credit facility in 2026 and 2025.

⁽⁶⁾

During the 26 weeks ended August 1, 2026, the Company repurchased 0.7 million shares of its common stock under its previously announced share repurchase program at an average price of $196.38 per share, for a total cost of $141.2 million, and has $3.0 billion remaining under existing share repurchase authorizations as of August 1, 2026.  The Company also paid $5 million during fiscal 2025 for shares repurchased during fiscal 2024.

⁽⁷⁾

The Company declared and paid quarterly dividends of $1.25 per share in fiscal 2026 and $1.2125 per share in fiscal 2025.

⁽⁸⁾

During the 26 weeks ended August 1, 2026, gross and net capital expenditures totaled $603.2 million and $474.3 million, respectively, for the DICK'S Business and $140.2 million and $139.9 million, respectively, for the Foot Locker Business.

⁽⁹⁾

Column may not recalculate due to rounding.

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION - UNAUDITED  (Continued)

Information below represents supplemental financial results for the DICK'S and Foot Locker Businesses for the periods presented. Prior period results reflect the DICK'S Business on a stand-alone basis, with the exception of proforma comparable sales information.  Refer to Proforma Comparable Sales section for additional information.

13 Weeks Ended

26 Weeks Ended

(in thousands)

August 1, 2026

August 2, 2025

August 1, 2026

August 2, 2025

Net sales

DICK'S Sporting Goods

$      3,849,887

$      3,646,616

$      7,227,327

$     6,821,293

Foot Locker

1,736,928

—

3,523,992

—

Total net sales

$      5,586,815

$      3,646,616

$    10,751,319

$     6,821,293

Gross profit

DICK'S Sporting Goods

$      1,457,029

$      1,351,272

$      2,684,350

$     2,516,358

Foot Locker

445,769

—

944,435

—

Corporate and other income (expense) ⁽¹⁾

40,473

—

(2,252)

—

Total gross profit

$      1,943,271

$      1,351,272

$      3,626,533

$     2,516,358

Segment profit

DICK'S Sporting Goods

$         485,204

$         474,952

$         846,179

$        835,361

Foot Locker

(31,876)

—

(14,414)

—

Reconciliation to pre-tax income

Corporate and other expense (income) ⁽²⁾

12,572

22,767

(59,641)

17,059

Interest expense

17,846

16,118

35,387

28,256

Other (income) expense

(15,504)

(73,749)

(28,670)

(67,493)

Pre-tax income

$         438,414

$         509,816

$         884,689

$        857,539

Proforma

Comparable Sales

13 Weeks Ended

26 Weeks Ended

August 1, 2026

August 2, 2025

August 1, 2026

August 2, 2025

DICK'S Sporting Goods

4.9 %

5.0 %

5.4 %

4.7 %

Proforma Foot Locker  ^{(3) (4)}

(3.6) %

(2.2) %

(1.6) %

(2.5) %

Proforma consolidated comparable sales  ⁽³⁾

2.1 %

2.5 %

3.0 %

2.1 %

⁽¹⁾

Corporate and other income (expense) within gross profit includes IEEPA tariff refunds received attributable to tariff costs incurred in the prior year and charges to write down and liquidate inventory from the Company's review of the Foot Locker Business.

⁽²⁾

Corporate and other expense (income) includes IEEPA tariff refunds received attributable to tariff costs incurred in the prior year and income from litigation and other settlements, offset by Foot Locker acquisition-related costs, charges incurred to redesign the store operating model for the DICK'S Business and changes in the fair value of employee deferred compensation plan investments held in rabbi trusts.

⁽³⁾

Proforma comparable sales are calculated as if Foot Locker had been acquired at the beginning of the periods presented. Sales have been adjusted to conform to the Company's method of reporting comparable sales. Comparable sales are calculated on a constant currency basis, which translates the current year's results using the prior year periods' exchange rates.

⁽⁴⁾

Includes Foot Locker International proforma comparable sales decreases of (3.3%) and (10.3%) for the 13 weeks ended August 1, 2026 and August 2, 2025, respectively, and decreases of (2.6%) and (9.6%) for the 26 weeks ended August 1, 2026 and August 2, 2025, respectively,  which represents operations of the Foot Locker Business in Europe and Asia Pacific.

Metric

Consolidated Full Year 2026 Outlook

Net sales

• $21.9 billion to 22.2 billion

Operating income

• $1.45 billion to 1.55 billion
• $1.46 billion to 1.56 billion on a non-GAAP basis ⁽¹⁾

Earnings per diluted

share

• $10.94 to 11.94
  • Based on approximately 90 million diluted shares outstanding, which includes the dilutive impact of the 9.6 million shares issued in connection with the Foot Locker acquisition
  • Based on an effective tax rate of approximately 29% ⁽²⁾
• $11.00 to 12.00 on a non-GAAP basis ⁽¹⁾

Capital expenditures

• Approximately $1.6 billion on a gross basis
• Approximately $1.4 billion on a net basis

⁽¹⁾

Refer to the section of this release titled "Non-GAAP Financial Measures" and GAAP to non-GAAP reconciliations included in tables later in this release under the heading "GAAP to Non-GAAP Reconciliations."

⁽²⁾

Effective tax rate includes the unfavorable mix of our earnings in foreign jurisdictions and the effect of purchase accounting adjustments, particularly in Europe, where losses do not currently generate a tax benefit due to valuation allowances.

Metric

Full Year 2026 Outlook

DICK'S Business

Foot Locker Business

Net sales

• $14.5 billion to 14.7 billion

• $7.4 billion to 7.5 billion

Comparable sales ⁽¹⁾

• Positive 2.5% to positive 4.0%

• Negative 2.0% to 0.0% ⁽¹⁾

Segment profit (loss) ⁽²⁾

• $1.54 billion to 1.60 billion

• $(80) million to (40) million

Segment profit (loss) ⁽²⁾

(% of net sales)

• 10.6% to 10.9%

• (1.1%) to (0.5%)

Capital expenditures

• Approximately $1.2 billion on a gross basis
• Approximately $1.0 billion on a net basis

• Approximately $0.4 billion on a gross basis
• Approximately $0.4 billion on a net basis

⁽¹⁾

Comparable sales outlook for the Foot Locker Business is on a proforma basis, as Foot Locker will be included in the quarterly comparable store calculation beginning in the fourth quarter of fiscal 2026, which is when these stores will commence their 14th full month of operations following the date of acquisition.

⁽²⁾

Segment profit represents operating income for a respective segment. Corporate and other activities, which represent costs or income not specifically related to the recurring operations of our segments, are not included in these results as they are not used by the Company to evaluate segment performance.

DICK'S Business

Beginning

Stores

New

Stores

Closed

Stores

Relocated /

Converted ⁽⁶⁾

Ending

Stores

Gross

Square Footage ⁽⁷⁾

(in millions)

Beginning

Ending

DICK'S

644

—

(2)

(12)

630

34.4

33.5

DICK'S Field House

42

4

—

6

52

2.4

2.9

DICK'S House of Sport

35

—

—

6

41

3.8

4.5

Total DICK'S

721

4

(2)

—

723

40.6

41.0

Other Specialty Concepts

Golf Galaxy ⁽¹⁾

113

1

—

—

114

2.5

2.5

Going Going Gone!

51

2

(1)

—

52

2.3

2.4

Public Lands

3

—

—

—

3

0.1

0.1

Total Other Specialty Concepts

167

3

(1)

—

169

4.9

5.0

Total DICK'S Business

888

7

(3)

—

892

45.5

46.0

Foot Locker Business

Beginning

Stores

New

Stores

Closed

Stores ⁽⁵⁾

Relocated /

Converted ⁽⁵⁾

Ending

Stores

Gross

Square Footage ⁽⁷⁾

(in millions)

Beginning

Ending

Foot Locker North America

734

1

(20)

—

715

4.4

4.3

Champs Sports

371

1

(8)

—

364

2.2

2.1

Kids Foot Locker

362

3

(12)

—

353

1.3

1.2

WSS

143

—

(44)

—

99

1.8

1.3

North America ⁽²⁾

1,610

5

(84)

—

1,531

9.7

8.9

Foot Locker Europe ⁽³⁾

573

2

(16)

—

559

2.3

2.3

Foot Locker Asia Pacific

94

—

(2)

—

92

0.4

0.4

atmos

30

2

(2)

—

30

—

—

International

697

4

(20)

—

681

2.8

2.7

Total Owned Stores

2,307

9

(104)

—

2,212

12.4

11.6

Licensed stores ⁽⁴⁾

254

18

(6)

—

266

1.1

1.2

Total Foot Locker Business

2,561

27

(110)

—

2,478

13.5

12.8

⁽¹⁾

As of August 1, 2026, includes 37 Golf Galaxy Performance Centers, with four new openings during fiscal 2026, three of which were conversions of prior Golf Galaxy store locations.

⁽²⁾

Represents store locations in the United States and Canada and related square footage.

⁽³⁾

Represents Foot Locker store locations in Europe, including one Kids Foot Locker store and related square footage, as of August 1, 2026.

⁽⁴⁾

Reflects licensed stores operating in the Middle East, Asia and Europe.

⁽⁵⁾

Store closures for the Foot Locker Business during fiscal 2026 includes 67 Foot Locker stores identified as part of the Company's review of unproductive assets. Additionally, the Foot Locker Business relocated or remodeled 41 stores during the current year period consisting of 13 Foot Locker, three Champs Sports, seven Kids Foot Locker and six WSS store locations in North America and 12 international store locations.

⁽⁶⁾

Reflects stores converted between concept or prototype through store relocations or remodels as part of the Company's strategy to reposition its store portfolio. In addition to stores that converted between concepts, the Company relocated or remodeled four stores during the current year period, consisting of three Golf Galaxy and one DICK'S House of Sport store locations.

⁽⁷⁾

Columns may not recalculate due to rounding.

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

(In thousands, except per share data)

13 Weeks Ended

August 1,

2026

% of

Sales ⁽¹⁾

August 2,

2025

% of

Sales

Net sales

$       5,586,815

100.00 %

$       3,646,616

100.00 %

Cost of goods sold, including occupancy and

   distribution costs

3,643,544

65.22

2,295,344

62.94

GROSS PROFIT

1,943,271

34.78

1,351,272

37.06

Selling, general and administrative expenses

1,447,422

25.91

878,737

24.10

Merger and integration costs

31,605

0.57

8,028

0.22

Pre-opening expenses

23,488

0.42

12,322

0.34

OPERATING INCOME

440,756

7.89

452,185

12.40

Interest expense

17,846

0.32

16,118

0.44

Other (income) expense

(15,504)

(0.28)

(73,749)

(2.02)

PRE-TAX INCOME

438,414

7.85

509,816

13.98

Provision for income taxes

122,953

2.20

128,414

3.52

NET INCOME

$          315,461

5.65 %

$          381,402

10.46 %

EARNINGS PER COMMON SHARE:

Basic

$                3.55

$                4.82

Diluted

$                3.50

$                4.71

WEIGHTED AVERAGE COMMON SHARES

   OUTSTANDING:

Basic

88,829

79,147

Diluted

90,131

81,041

⁽¹⁾ Column does not add due to rounding

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

(In thousands, except per share data)

26 Weeks Ended

August 1,

2026

% of

Sales

August 2,

2025

% of

Sales ⁽¹⁾

Net sales

$      10,751,319

100.00 %

$       6,821,293

100.00 %

Cost of goods sold, including occupancy and

   distribution costs

7,124,786

66.27

4,304,935

63.11

GROSS PROFIT

3,626,533

33.73

2,516,358

36.89

Selling, general and administrative expenses

2,611,350

24.29

1,664,265

24.40

Merger and integration costs

85,420

0.79

8,028

0.12

Pre-opening expenses

38,357

0.36

25,763

0.38

OPERATING INCOME

891,406

8.29

818,302

12.00

Interest expense

35,387

0.33

28,256

0.41

Other (income) expense

(28,670)

(0.27)

(67,493)

(0.99)

PRE-TAX INCOME

884,689

8.23

857,539

12.57

Provision for income taxes

249,406

2.32

211,849

3.11

NET INCOME

$           635,283

5.91 %

$          645,690

9.47 %

EARNINGS PER COMMON SHARE:

Basic

$                 7.16

$                8.15

Diluted

$                 7.04

$                7.95

WEIGHTED AVERAGE COMMON SHARES

   OUTSTANDING:

Basic

88,682

79,244

Diluted

90,269

81,259

⁽¹⁾ Column does not add due to rounding

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS - UNAUDITED

(In thousands)

August 1,

2026

August 2,

2025

January 31,

2026

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$            913,736

$         1,231,022

$        1,353,226

Accounts receivable, net

457,634

223,879

475,852

Income taxes receivable

92,989

29,792

68,455

Inventories, net

5,565,341

3,403,914

4,907,823

Prepaid expenses and other current assets

290,104

165,440

299,435

Total current assets

7,319,804

5,054,047

7,104,791

Property and equipment, net

3,989,714

2,431,782

3,512,776

Operating lease assets

4,749,410

2,424,625

4,594,670

Intangible assets, net

763,252

58,598

768,575

Goodwill

837,019

245,857

864,047

Deferred income taxes

63,060

3,387

82,501

Other assets

523,163

472,475

484,139

TOTAL ASSETS

$       18,245,422

$       10,690,771

$       17,411,499

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable

$         2,245,630

$         1,401,800

$        1,986,990

Accrued expenses

1,169,329

666,451

1,115,306

Operating lease liabilities

970,819

504,975

1,004,909

Income taxes payable

54,994

34,391

7,533

Deferred revenue and other liabilities

488,453

371,900

528,820

Total current liabilities

4,929,225

2,979,517

4,643,558

LONG-TERM LIABILITIES:

Revolving credit borrowings

—

—

—

Long-term debt and financing lease obligations

1,906,348

1,484,707

1,905,299

Long-term operating lease liabilities

5,085,984

2,619,090

4,836,435

Deferred income taxes

287,872

40,535

203,920

Other long-term liabilities

310,271

211,836

282,167

Total long-term liabilities

7,590,475

4,356,168

7,227,821

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY:

Common stock

656

556

653

Class B common stock

236

236

236

Additional paid-in capital

3,664,839

1,502,184

3,724,836

Retained earnings

7,238,506

6,843,448

6,827,900

Accumulated other comprehensive (loss) income

(5,996)

(426)

17,813

Treasury stock, at cost

(5,172,519)

(4,990,912)

(5,031,318)

Total stockholders' equity

5,725,722

3,355,086

5,540,120

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$       18,245,422

$       10,690,771

$       17,411,499

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED

(In thousands)

26 Weeks Ended

August 1,

2026

August 2,

2025

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$        635,283

$         645,690

Adjustments to reconcile net income to net cash provided by operating

activities:

Depreciation and amortization

313,351

203,522

Amortization of deferred financing fees and debt discount

3,034

5,774

Deferred income taxes

85,356

89,832

Stock-based compensation

53,851

37,948

Other, net

(5,508)

(32,591)

Changes in assets and liabilities:

Accounts receivable

13,359

(11,670)

Inventories

(662,488)

(54,084)

Prepaid expenses and other assets

(2,766)

(17,185)

Accounts payable

254,701

(88,601)

Accrued expenses

9,231

(22,748)

Income taxes payable / receivable

90,553

(21,199)

Construction allowances provided by landlords

129,263

70,583

Deferred revenue and other liabilities

(39,843)

(20,016)

Operating lease assets and liabilities

(85,103)

(49,614)

Net cash provided by operating activities

792,274

735,641

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital expenditures

(743,470)

(526,076)

Other investing activities

(10,399)

(122,794)

Net cash used in investing activities

(753,869)

(648,870)

CASH FLOWS FROM FINANCING ACTIVITIES:

Payment of bridge facility financing fees

—

(7,863)

Payments on financing lease obligations

(2,021)

—

Proceeds from exercise of stock options

7,598

969

Minimum tax withholding requirements

(121,436)

(32,059)

Cash paid for treasury stock

(141,208)

(303,671)

Cash dividends paid to stockholders

(224,750)

(196,052)

Increase (decrease) in bank overdraft

9,285

(7,342)

Net cash used in financing activities

(472,532)

(546,018)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

(5,363)

329

NET DECREASE IN CASH AND CASH EQUIVALENTS

(439,490)

(458,918)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

1,353,226

1,689,940

CASH AND CASH EQUIVALENTS, END OF PERIOD

$        913,736

$      1,231,022

DICK'S SPORTING GOODS, INC.

GAAP to NON-GAAP RECONCILIATIONS - UNAUDITED

Non-GAAP Net Income and Earnings Per Share Reconciliations 

(dollars in thousands, except per share amounts)

13 Weeks Ended August 1, 2026

Gross

profit

Selling,

general and

administrative

expenses

Operating

income

Other

(income)

expense

Pre-tax

income

Net

income ⁽⁵⁾

Earnings

per diluted

share

GAAP Basis

$               1,943,271

$     1,447,422

$             440,756

$            (15,504)

$             438,414

$             315,461

$         3.50

% of Net Sales

34.78 %

25.91 %

7.89 %

(0.28) %

7.85 %

5.65 %

Foot Locker acquisition-

   related costs ⁽¹⁾

(2,336)

—

29,269

—

29,269

22,000

Tariff refunds ⁽²⁾

(38,137)

—

(38,137)

2,091

(40,228)

(30,311)

Store operating model

   redesign ⁽³⁾

—

(15,349)

15,349

—

15,349

11,384

Deferred compensation

   plan adjustments ⁽⁴⁾

—

(6,091)

6,091

6,091

—

—

Non-GAAP Basis

$               1,902,798

$     1,425,982

$             453,328

$              (7,322)

$             442,804

$             318,534

$         3.53

% of Net Sales

34.06 %

25.52 %

8.11 %

(0.13) %

7.93 %

5.70 %

⁽¹⁾   Foot Locker acquisition-related costs of $29.3 million include a $2.3 million inventory adjustment from the Company's review of the

       Foot Locker Business, offset by merger and integration costs of $31.6 million, which includes severance and other employee-related

       costs, store closing charges, legal and professional fees, and other costs related to the Foot Locker acquisition.

⁽²⁾   Includes IEEPA tariff refunds received attributable to tariff costs incurred in the prior year, including related interest income.

⁽³⁾   Includes severance, training and other costs incurred in redesigning our store operating model for the DICK'S Business to better serve

       our athletes.

⁽⁴⁾   Includes non-cash changes in fair value of employee deferred compensation plan investments held in rabbi trusts.

⁽⁵⁾   The provision for income taxes for non-GAAP adjustments was tax effected at the statutory rate of the applicable tax jurisdiction,

       which approximates 30%.

26 Weeks Ended August 1, 2026

Gross

profit

Selling,

general and

administrative

expenses

Operating

income

Other

(income)

expense

Pre-tax

income

Net

Income

⁽⁶⁾

Earnings

per diluted

share

GAAP Basis

$               3,626,533

$     2,611,350

$             891,406

$            (28,670)

$             884,689

$             635,283

$         7.04

% of Net Sales

33.73 %

24.29 %

8.29 %

(0.27) %

8.23 %

5.91 %

Foot Locker acquisition-

   related costs ⁽¹⁾

40,389

—

125,809

—

125,809

95,528

Litigation and other

   settlements ⁽²⁾

—

174,464

(174,464)

—

(174,464)

(131,169)

Tariff refunds ⁽³⁾

(38,137)

—

(38,137)

2,091

(40,228)

(30,311)

Store operating model

   redesign ⁽⁴⁾

—

(15,349)

15,349

—

15,349

11,384

Deferred compensation

   plan adjustments ⁽⁵⁾

—

(11,802)

11,802

11,802

—

—

Non-GAAP Basis

$               3,628,785

$     2,758,663

$             831,765

$            (14,777)

$             811,155

$             580,715

$         6.43

% of Net Sales

33.75 %

25.66 %

7.74 %

(0.14) %

7.54 %

5.40 %

⁽¹⁾   Foot Locker acquisition-related costs of $125.8 million include $40.4 million to write down and liquidate inventory from the

       Company's review of the Foot Locker Business and merger and integration costs of $85.4 million, which includes severance and

       other employee-related costs, store closing charges, legal and professional fees, and other costs related to the Foot Locker

       acquisition.

⁽²⁾   Represents $150.0 million in income received, net of legal fees, as a result of settlement on credit and debit card interchange fees

       and $24.5 million of income received from a landlord for early lease termination of a store location.

⁽³⁾   Includes IEEPA tariff refunds received attributable to tariff costs incurred in the prior year, including related interest income.

⁽⁴⁾   Includes severance, training and other costs incurred in redesigning our store operating model for the DICK'S Business to better

       serve our athletes.

⁽⁵⁾   Includes non-cash changes in fair value of employee deferred compensation plan investments held in rabbi trusts.

⁽⁶⁾   Except for approximately $5.7 million of non-deductible merger and integration costs, the provision for income taxes for non-GAAP

       adjustments was tax effected at the statutory rate of the applicable tax jurisdiction, which approximates 26%.

13 Weeks Ended August 2, 2025

Selling,

general and

administrative

expenses

Operating

income

Interest

expense

Other

(income)

expense

Pre-tax

income

Net income

⁽⁴⁾

Earnings

per diluted

share

GAAP Basis

$                  878,737

$        452,185

$               16,118

$            (73,749)

$             509,816

$             381,402

$         4.71

% of Net Sales

24.10 %

12.40 %

0.44 %

(2.02) %

13.98 %

10.46 %

Investment gains ⁽¹⁾

—

—

—

49,745

(49,745)

(36,812)

Foot Locker acquisition-

   related costs ⁽²⁾

—

8,028

(4,508)

—

12,536

10,337

Deferred compensation plan

   adjustments ⁽³⁾

(14,739)

14,739

—

14,739

—

—

Non-GAAP Basis

$                  863,998

$        474,952

$               11,610

$              (9,265)

$             472,607

$             354,927

$         4.38

% of Net Sales

23.69 %

13.02 %

0.32 %

(0.25) %

12.96 %

9.73 %

⁽¹⁾   Included non-cash gains from non-operating investment in Foot Locker equity securities.

⁽²⁾   Represents legal and regulatory fees, other professional services and deferred financing amortization on a bridge facility related to

       the Foot Locker acquisition.

⁽³⁾   Included non-cash changes in fair value of employee deferred compensation plan investments held in rabbi trusts.

⁽⁴⁾   Except for $4.1 million of non-deductible merger and integration costs, the provision for income taxes for non-GAAP adjustments was

       calculated at 26%, which approximated the Company's blended tax rate.

26 Weeks Ended August 2, 2025

Selling,

general and

administrative

expenses

Operating

income

Interest

expense

Other

(income)

expense

Pre-tax

income

Net income

⁽⁴⁾

Earnings

per diluted

share

GAAP Basis

$               1,664,265

$        818,302

$               28,256

$            (67,493)

$             857,539

$             645,690

$         7.95

% of Net Sales

24.40 %

12.00 %

0.41 %

(0.99) %

12.57 %

9.47 %

Investment gains ⁽¹⁾

—

—

—

35,865

(35,865)

(26,539)

Foot Locker acquisition-

   related costs ⁽²⁾

—

8,028

(4,508)

—

12,536

10,337

Deferred compensation

   plan adjustments ⁽³⁾

(9,031)

9,031

—

9,031

—

—

Non-GAAP Basis

$               1,655,234

$        835,361

$               23,748

$            (22,597)

$             834,210

$             629,488

$         7.75

% of Net Sales

24.27 %

12.25 %

0.35 %

(0.33) %

12.23 %

9.23 %

⁽¹⁾   Included non-cash gains from non-operating investment in Foot Locker equity securities.

⁽²⁾   Represents legal and regulatory fees, other professional services and deferred financing amortization on a bridge facility related to

       the Foot Locker acquisition.

⁽³⁾   Included non-cash changes in fair value of employee deferred compensation plan investments held in rabbi trusts.

⁽⁴⁾   Except for $4.1 million of non-deductible merger and integration costs, the provision for income taxes for non-GAAP adjustments was

       calculated at 26%, which approximated the Company's blended tax rate.

Gross Capital Expenditures to Net Capital Expenditures Reconciliation

(in thousands)

The following table represents a reconciliation of the Company's gross capital expenditures to its capital expenditures, net of construction allowances.

26 Weeks Ended August 1, 2026

26 Weeks Ended August 2, 2025

DICK'S

Foot

Locker

Consolidated

DICK'S

Foot

Locker

Consolidated

Gross capital expenditures

$       (603,225)

$       (140,245)

$             (743,470)

$      (526,076)

$              —

$            (526,076)

Construction allowances

   provided by landlords

128,962

301

129,263

70,583

—

70,583

Net capital expenditures

$       (474,263)

$       (139,944)

$             (614,207)

$      (455,493)

$              —

$            (455,493)

Reconciliation of Non-GAAP Operating Income and Earnings Per Diluted Share Guidance

(dollars in millions, except per share amounts)

52 Weeks Ended January 30, 2027

Low End

High End

Operating

income

Earnings per

diluted share

Operating

income

Earnings per

diluted share

GAAP Basis

$           1,448

$             10.94

$         1,553

$             11.94

Foot Locker acquisition-related costs ⁽¹⁾

200

1.68

200

1.68

Litigation and other settlements ⁽²⁾

(174)

(1.46)

(174)

(1.46)

Tariff refunds ⁽³⁾

(38)

(0.33)

(38)

(0.33)

Store operating model redesign ⁽⁴⁾

21

0.17

21

0.17

Non-GAAP Basis

$           1,457

$             11.00

$         1,562

$             12.00

⁽¹⁾

Adjustment eliminates the impact of future Foot Locker acquisition-related charges. Refer to "Acquisition of Foot Locker" section above for additional information.

⁽²⁾

Represents income received, net of legal fees, as a result of settlement on credit and debit card interchange fees and from a landlord for early lease termination of a store location.

⁽³⁾

Includes IEEPA tariff refunds received attributable to tariff costs incurred in the prior year, including related interest income.

⁽⁴⁾

Includes severance, training and other costs incurred in redesigning our store operating model for the DICK'S Business to better serve our athletes.