DICK'S SPORTING GOODS, INC.DKS

DICK'S SPORTING GOODS, INC. Earnings Per Share Disclosure

10-KFiled Mar 27, 20252 min read
Earnings per Common Share
The computations for basic and diluted earnings per common share were as follows for the fiscal years presented below (in thousands, except per share data):
 
202420232022
Numerator:
Net income for earnings per common share – basic
$1,165,308 $1,046,519 $1,043,138 
Effect of dilutive securities
Interest expense associated with Convertible Senior Notes, net of tax— 337 27,060 
Net income for earnings per common share – diluted
$1,165,308 $1,046,856 $1,070,198 
Denominator:
Weighted average common shares outstanding – basic
80,468 82,302 77,672 
Dilutive effect of stock-based awards2,461 2,977 5,235 
Dilutive effect of warrants— 254 5,575 
Dilutive effect of Convertible Senior Notes— 392 10,792 
Weighted average common shares outstanding – diluted
82,929 85,925 99,274 
Earnings per common share:
Basic$14.48 $12.72 $13.43 
Diluted$14.05 $12.18 $10.78 
Stock-based awards excluded from diluted shares18 186 140 
The dilutive effect of the Convertible Senior Notes included shares that were designed to be offset at settlement by shares delivered from the bond hedge purchased by the Company. The shares provided by the bond hedge were anti-dilutive; accordingly, they were not treated as a reduction to diluted weighted average shares outstanding until received at settlement. In addition, the dilutive effect of the Convertible Senior Notes included shares related to the outstanding principal amount of the Convertible Senior Notes. Although the Company was required to assume that the Convertible Senior Notes would be settled in shares of its common stock in accordance with the “if-converted method” under U.S. GAAP, the Company settled the Convertible Senior Notes without dilutive effect, due to cash payments for principal, shares received from the convertible bond hedge and share repurchases to offset the share settlement of the remaining $59.1 million of principal during fiscal 2023. Refer to Note 10 – Convertible Senior Notes for further information.

Historical Timeline

Fiscal YearFiled
2025Mar 27, 2025Showing above
2019Mar 29, 2019

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

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