DKS Stock Forecast & Price Target

Dick's Sporting Goods reported a significant year-over-year sales increase of 36.3%, reaching $4.168 billion, with future guidance now indicating anticipated sales growth of 3.8%-4.1% for the upcoming year, a notable improvement from previous projections. The company's core business saw a growth of 5.9% in sales, driven by a 4.4% increase in ticket prices due to an enhanced merchandise mix, as well as transaction growth. Furthermore, Dick's has strengthened its partnership with Nike, resulting in an estimated 80% growth in Nike-related business since 2019, alongside strategic improvements in inventory differentiation and omnichannel offerings that position the company favorably for long-term growth dynamics.

The financial outlook for Dick's Sporting Goods appears negative due to poor performance from the recently acquired Foot Locker, which reported a pro forma comparable sales decline of 4.7% in 3Q25, driven by weaker demand and reduced penetration of Nike products. Additionally, operating income is anticipated to be "slightly negative," with projections indicating a decline in gross margin by 1,000 to 1,500 basis points and a soft 4Q25 performance characterized by further decreases in comparable sales, estimated between mid-single digits (MSD) and high-single digits (HSD). Overall, the financial metrics indicate a downward trend in earnings per share, with a significant cut from $14.50 to $12.95 and a contraction in operating margins from 11.1% to 8.8%.