DICK'S Sporting Goods, Inc.

- The company ended the year with approximately $1.35 billion in cash and cash equivalents. - There are no borrowings on the $2 billion unsecured credit facility as of the report. - Capital expenditures for 2026 are planned at approximately $1.5 billion, including store growth and technology investments. - The company plans to return significant capital to shareholders via quarterly dividends and opportunistic share repurchases. - No new fundraising through debt or equity was mentioned or planned in the discussed periods. - Share repurchases are intended to offset normal course dilution, factored into EPS guidance. - Overall, the company appears focused on organic capital allocation without immediate plans for new fundraising through debt or equity.

- **2026 Capital Expenditures:** Approximately $1.5 billion planned consolidated net capital expenditure. - **DICK’S Business Investments:** - Continued repositioning and elevating real estate and store portfolio. - Focus on store growth, relocations, and improvements of existing stores. - Ongoing investments in technology and supply chain. - Planned opening of ~14 House of Sport locations and ~22 Field House locations in 2026. - Construction beginning on ~18 additional House of Sport locations for 2027 openings. - Grow Golf Galaxy footprint with ~15 Golf Galaxy Performance Center openings. - **Foot Locker Investments:** - Capital focused on reenergizing store fleet. - Rapid expansion of the Fast Break initiative. - **Strategic Investments:** - Continued investment in digital tools, AI for inventory, store labor forecasting, and personalized athlete experiences. - Emphasis on enhancing DICK’S Media Network and GameChanger platforms.

- DICK'S Sporting Goods expects total sales in 2026 between $14.5 billion and $14.7 billion, with comp sales growth of 2% to 4% (midpoint 3%) representing a strong 7.5% two-year comp stack. - Foot Locker's total sales are anticipated in the range of $7.6 billion to $7.7 billion in 2026, with pro forma comp sales projected between 1% to 3%. - Growth drivers include expanded store formats like House of Sport and Field House, with plans to open 14 House of Sport and 22 Field House locations in 2026, plus additional construction for 2027. - Foot Locker sales and profitability are expected to be back-half weighted, with an inflection point starting at back-to-school 2026 due to inventory sourcing improvements and the Fast Break store rollout (targeting 250 stores by back-to-school). - Long-term growth fueled by strong brand partnerships, innovation, expanding athlete engagement, and leveraging technology and AI tools for personalized consumer experiences.

- **DICK’S Sporting Goods Business (2026 Outlook):** - Comp sales growth: 2% to 4%, midpoint 7.5% two-year comp stack. - Operating margin: ~11.1% at midpoint, expecting up to 10 basis points expansion. - Non-GAAP EPS: $13.50 to $14.50. - **Foot Locker Business (2026 Outlook):** - Comp sales growth: 1% to 3%. - Operating income: $100 million to $150 million. - Profitability is expected to be back-half weighted, with inflection starting at back-to-school. - **Synergies:** - Cost synergies of $100M to $125M over the medium term, with some benefits expected in 2026. - **Long-Term View:** - Confident in restoring Foot Locker’s profitability and growth. - Early progress with Fast Break stores showing strong comps and margin improvements. - Longer-term operating income target for Foot Locker ($700M+ pre-2020 level) not yet forecasted but optimism remains.

The transcript does not explicitly mention the current or expected order book or pending orders for DICK’S Sporting Goods or Foot Locker. However, relevant points related to business momentum and inventory include: - Foot Locker’s inventory cleanup is essentially complete, positioning it well for expected growth starting back-to-school 2026. - Foot Locker’s total sales guidance for 2026: $7.6 billion to $7.7 billion, with 1% to 3% comp sales growth. - DICK’S anticipates comp sales growth of 2% to 4% in 2026, with total sales expected between $14.5 billion and $14.7 billion. - Inventory for the combined company is up 47% YoY, with DICK’S inventory up 1%, indicating strong product availability to fuel sales momentum. - Capital expenditures and investments are planned to support store expansions and technology for both businesses in 2026. No direct references to specific order books or pending orders were provided.