DKS vs WSM

Key Takeaways

• Both DKS and WSM delivered Q4 earnings beats, with DKS posting adjusted EPS of $3.45 and revenue of $6.23 billion, driven by 3.1% comp sales growth in its core business.
• WSM reported Q4 diluted EPS of $3.04, surpassing estimates, on $2.36 billion in revenue with 3.2% comparable brand revenue growth despite a YoY revenue decline.
• DKS full-year non-GAAP EPS reached $13.20 consolidated, boosted by Foot Locker acquisition, while guiding FY2026 adjusted EPS to $13.50–$14.50.
• WSM achieved record FY2025 diluted EPS of $8.84, with FY2026 guidance for 2.0%–6.0% comp growth and 17.5%–18.1% operating margin.
• Both companies expanded store footprints and returned capital to shareholders, highlighting operational resilience amid consumer spending pressures.
• Tariffs pose headwinds for WSM, while DKS navigates Foot Locker integration costs.

Earnings Context and Why This Comparison Matters

Recent quarterly earnings from DKS and WSM offer insights into discretionary retail dynamics. DKS, a leading sporting goods retailer, and WSM, a premium home furnishings provider, compete for affluent consumer dollars in lifestyle spending. Both reported on March 12 and March 18, respectively, revealing strengths in comp sales and margins despite macroeconomic headwinds like tariffs and integration challenges. This comparison underscores how sector peers balance growth, efficiency, and strategic expansions.

Williams-Sonoma (WSM) Focus

Williams-Sonoma released Q4 fiscal 2025 results (quarter ended February 1, 2026), posting net revenue of $2.36 billion, down from prior-year due to a 53rd week in FY2024, but with comparable brand revenue up 3.2%. Diluted EPS came in at $3.04, beating consensus estimates. Operating margin stood at 20.3%, reflecting disciplined cost management amid tariff pressures. Gross margin was 46.9%, impacted by merchandise margins but offset by supply chain gains.

For full fiscal 2025, revenue reached $7.81 billion with 3.5% comp growth, record diluted EPS of $8.84, and operating margin of 18.1%. The company increased its quarterly dividend 15% to $0.76 per share and repurchased $854 million in shares, maintaining $1.0 billion in cash. FY2026 outlook projects comparable brand revenue growth of 2.0%–6.0% and operating margin of 17.5%–18.1%, factoring in ongoing tariffs.

Dick's Sporting Goods (DKS) Context

Dick's Sporting Goods reported Q4 fiscal 2025 (ended January 31, 2026) consolidated revenue of $6.23 billion, up 59.9% YoY, propelled by the Foot Locker acquisition closed September 8, 2025, and record DICK'S business sales with 3.1% comp growth. Adjusted consolidated EPS was $3.45, while DICK'S business non-GAAP EPS hit $4.05. GAAP net income was $128.3 million, reflecting $390 million in full-year pre-tax acquisition charges.

Full-year consolidated revenue totaled $17.22 billion, with non-GAAP EPS of $13.20. FY2026 guidance includes net sales of $22.1–$22.4 billion, non-GAAP EPS of $13.50–$14.50, and DICK'S comps of 2.0%–4.0%. Plans call for 14 new House of Sport stores and dividend hike to $5.00 annualized.

Head-to-Head Earnings and Market Comparison

WSM showcased margin resilience with 20.3% Q4 operating margin versus DKS's 7.0% non-GAAP consolidated, though DKS DICK'S business hit 11.0%. Revenue scale favors DKS at $6.23 billion Q4, but WSM's comps edged higher at 3.2%.

Growth drivers include DKS's store expansions and Foot Locker synergies versus WSM's e-commerce (65% of sales) and brand collaborations. Risks: DKS faces $500–750 million integration costs; WSM tariffs (~$80 million inventory hit). Sentiment leans positive on both for market share gains, with DKS offering scale and WSM superior ROIC at 42.3%.

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Tickeron AI Verdict

Tickeron AI favors DKS with 65% probability over the next quarter, citing superior revenue scale, acquisition-driven growth potential, and stable FY2026 EPS guidance amid strong comp trends, despite integration risks. WSM offers high-quality margins and capital returns but faces tariff exposure tempering outlook stability.

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