Dick's Sporting Goods Inc

Hello, everyone. Thank you for joining us and welcome to the Dick's Sporting Goods Q1 2026 earnings conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Nate Gilch, VP of Investor Relations. Nate, please go ahead.

Good morning, everyone, and thank you for joining us to discuss our first quarter 2026 results. On today's call will be Ed Stack, our executive chairman, Lauren Hobart, our president and chief executive officer, and Navdeep Gupta, our chief financial officer. A playback of today's call will be archived in our investor relations website located at investors.dix.com for approximately 12 months. As a reminder, we will be making forward-looking statements which are subject to various risks and uncertainties that could cause our actual results to differ materially from these statements. Any such statements should be considered in conjunction with cautionary statements in our earnings release and risk factor discussions in our filings with the SEC, including our last annual report on Form 10-K, as well as cautionary statements made during this call. We assume no obligation to update any of these forward-looking statements or information. please refer to our investor relations website to find the reconciliation of our non-GAAP financial measures referenced in today's call. And finally, a couple of admin items. First, a quick reminder on our comparable sales reporting. Foot Locker will be included in our quarterly comp calculations beginning in Q4 of 2026, which will mark the start of their 14th full month of operations post-acquisition. And finally, For future scheduling purposes, we are tentatively planning to publish our second quarter 2026 earnings results on August 25th, 2026. And with that, I'm going to turn the call over to Ed.

Thanks, Nate. Good morning, everyone. We delivered a very strong first quarter and want to thank our more than 100,000 teammates around the globe for their commitment and execution. Sport is one of the hottest categories in the country today. We're in the middle of a real sports moment, and the intersection of sport and culture has never been stronger. You see it everywhere, from rising valuation of professional sports teams, to the level of investment from streaming platforms and networks, and the strong demand from advertisers to be a part of live sports. Looking ahead, With major global events like the 2026 World Cup and the 2028 Summer Olympics in LA, we're entering one of the most exciting multi-year periods for sport in this country's history, making it an incredibly powerful and compelling platform for consumer engagement today. This environment plays directly to our strengths and DIX is leading from the front across our stores, our digital capabilities, and our now expanded global reach, we are connecting with athletes in more ways and with more relevance than at any point in our history. What sets us apart is our ability to create and maintain that connection across performance, lifestyle, and culture throughout the Dix ecosystem. House of Sport and Fieldhouse are reshaping what retail can be and redefining how brands come to life. Game Changer keeps us deeply embedded in youth sports, unlocking new levels of opportunity and partnership. Golf Galaxy reinforces our leadership in a category with strong participation and rising cultural relevance. And with Foot Locker, we reach a different consumer, connected deeply with sneaker culture, basketball, and lifestyle, and extend our influence even further. That's why the best and most exciting sports brands in the world want to partner with us. Not just to sell product, but to launch ideas, tell stories, and scale concepts globally during the most important moments in sports. And that's why athlete engagement with us continues to grow. We're investing in our business from a position of strength. We're playing offense for the long term. And it's widening the gap between us and the rest of the industry. Our vision is to build the best sports company in the world and we're just getting started. Our leadership showed up clearly with an exceptionally strong performance in our Dick's business this quarter with comps of 6%. Our team executed at a very high level and we're all proud of their contributions. Now turning to Foot Locker. We remain highly focused on the transformational opportunity ahead and on delivering an inflection point in sales and profitability starting with back to school. Our excitement and confidence continue to build as we execute our plan. And in Q1, we saw encouraging proof points. For the global Foot Locker business, we delivered slightly positive comps and operating income with merge margin improvement. This marks the first quarter of positive comps for the Foot Locker business since Q4 of 2024. North America performed even better with a 1.4% comp growth and within this, the U.S. Foot Locker banner comped up 6.4%. The Foot Locker banner is our largest and most critical part of the Foot Locker business, so it's where we focused first, and the results we're seeing reinforce our turnaround approach. We have a clear plan, and it's working. We're raising the low end of our full year comp sales expectations for the Foot Locker business. We now expect comp sales growth of previously. A major driver of this strong execution is our store teammates. Our stripers and blue shirts are energized by the renewed momentum and investment in our stores. They are deeply embedded in their communities. They're the closest to the consumer because they are the consumer. Wearing the stripes in their own backyard is a badge of honor and that authenticity shows up every day in how they tell the sneaker story. Our fast break stores are performing exceptionally well, reinforcing our conviction in this capital light remodel initiative. During the first quarter, we expanded fast break by approximately 90 stores, bringing the total to approximately 100. Across that expanded footprint, our fast break stores delivered double digit comps in Q1 and meaningful merchandise margin improvement. By back to school, we plan to have approximately 250 fast break stores across Foot Locker, Kids Foot Locker, and Champs globally with further expansion ahead of the holiday season. Our fast break initiative is built on retail fundamentals, a more focused shoe wall, improved storytelling, and the reintroduction of apparel with curated and complimentary offerings. These updates are fast to implement, typically completed in a few days, and require limited capital. At its core, it's retail 101, and when you execute it with discipline, it works. Looking across the entire Foot Locker business, we are very excited about our assortment heading into back to school. This marks the first season where our team had full control over the buys, and we feel great about the product that will be in the stores. This will be supported by a bold brand relaunch designed to bring consumers back to the Foot Locker brand in a meaningful way. Behind the scenes, we are strengthening the fundamentals of the Foot Locker business. With improvements in our supply chain, we're moving product faster and getting it to the right stores. We're playing greater discipline around pricing and using real-time data to drive better decisions and sharper execution. Finally, our brand partners remain fully engaged. They want a strong, growing Foot Locker, and they are leaning in with us as their largest global partner. In closing, the early results we're seeing reinforce our conviction in both the opportunity and our approach. We have the right plan, the right team, and the right partnerships in place to unlock the full potential of the Foot Locker business. With that, Lauren will walk you through the continued momentum across the Dick's business. Lauren, I'll turn it over to you.