DKS Stock Forecast & Price Target

Dick's Sporting Goods demonstrated a robust financial performance, with consolidated sales increasing by 36.3% year-over-year to $4.168 billion, reflecting strong underlying demand across multiple segments. The company's guidance indicates a sales growth projection of 3.8%-4.1%, raising expectations for total sales to reach between $13.95 billion and $14.00 billion, up from previous estimates. Additionally, Dick's has shown significant structural improvements since 2019, including a noteworthy 80% growth in its Nike business and enhanced omnichannel capabilities, positioning the company favorably in the competitive retail landscape.

The financial outlook for Dick's Sporting Goods appears concerning, primarily due to weak performance metrics at its newly acquired Foot Locker, which reported a 4.7% comparable store sales decline in the third quarter of 2025 and a significant drop in Nike product penetration from over 70% in 2019 to nearly 60%. The anticipated operating income is projected to be "slightly negative," with expectations of a comp decline in the fourth quarter ranging from mid-single digits to high-single digits, as the company undertakes substantial inventory reductions. Additionally, Foot Locker's gross margin is forecasted to decrease by 1,000 to 1,500 basis points, while operating margin is expected to contract by approximately 200 basis points, further indicating potential profitability challenges ahead for Dick's Sporting Goods.