Overview

• Dick's said it has received all required regulatory approvals for its $2.4 billion purchase of Foot Locker and expects to close on Sept. 8.
• Second-quarter results topped estimates with revenue of $3.65 billion, adjusted earnings of $4.38 per share, and 5% comparable sales growth.
• The company lifted full-year guidance to 2%–3.5% comp growth and $13.90–$14.50 EPS on $13.75–$13.95 billion in revenue, excluding any impact from the Foot Locker deal.
• Foot Locker reported Q2 sales down 2.4% to $1.85 billion and a wider net loss of $38 million, with comps down 2.0% as North America rose 1.4% and Europe/Asia Pacific fell 10.3%.
• It remains unclear whether approvals required divestitures, and Dick's has not outlined a detailed strategy for Foot Locker beyond saying it expects to run the chain as a separate business unit.