DICK’S Sporting Goods Earnings On Deck: Stock Underperforming Into Print

DICK'S Sporting Goods (NYSE: DKS) prepares to release its earnings this morning, before market open, with the stock underperforming into the print. DKS is trading at $208 in the pre-market session, with a 10% decline in the last month moving the stock red on the YTD (-9.08%).

Analysts expect DICK’S Sporting Goods to report an EPS of $2.71, slightly below last year’s $2.75, indicating a marginal decline in profitability. Revenue is projected at $4.43 billion, representing a substantial 45.07% year-over-year increase in sales.

Recent events have significantly shaped the narrative around DICK'S Sporting Goods. The most impactful was the acquisition of Foot Locker, finalized on September 8th for approximately $2.4 billion. The deal offered Foot Locker shareholders the option of $24.00 in cash or 0.1168 shares of DICK'S common stock per Foot Locker share.

The overwhelming preference for stock consideration, with 92.6% of shareholders choosing stock over cash, led to the issuance of new shares, which could potentially dilute earnings per share in the short term. While the acquisition expands DICK'S market presence and potential synergies, the immediate impact on profitability remains a key concern.

Institutional investment activity presents a mixed picture. In October, Lancaster Investment Management initiated a substantial position in DICK'S, acquiring 141,987 shares valued at approximately $31.6 million. This significant investment, representing a large portion of Lancaster's assets under management, signals confidence in DICK'S long-term potential.

However, contrasting this, Envestnet Asset Management Inc. reduced its holdings in DICK'S by 11.6% in the second quarter of 2025, and the Teacher Retirement System of Texas decreased its stake by a substantial 48.4%. These reductions suggest that some institutional backers are taking a more cautious approach, potentially due to concerns about integration challenges related to the Foot Locker acquisition or broader economic uncertainties.

Analysts' ratings and forecasts offer some optimism. John Kernan of TD Cowen reiterated a “Hold” rating with a price target of $234, suggesting a potential upside of 13.02%. Other analysts, like Michael Lasser from UBS and Paul Lejuez from Citi, have set even higher price targets of $275 and $280, respectively. However, these targets were set before the earnings release, and may not fully incorporate the impact of the Foot Locker acquisition and the potential dilution of earnings.

DICK'S has also been actively involved in community engagement. The DICK'S Sporting Goods Foundation announced a matched donation program to support the construction of the Josh Gibson Champions Club & Sports Matter Center, committing up to $2 million in matching funds.

This initiative enhances the company's public image and reinforces its commitment to youth sports. Furthermore, the company's plan to hire approximately 14,000 seasonal employees for the holiday season indicates an expectation of increased consumer demand, which could positively impact revenue.

Looking back to the first quarter of 2025, DICK'S reported a comparable sales growth of 4.5% and earnings per diluted share of $3.24 (non-GAAP earnings per diluted share at $3.37). These results demonstrate a positive financial trajectory, but markets will be keen to see if this momentum has continued, especially given the integration of Footlocker.