As consumer enthusiasm for active lifestyles drives demand in the sporting goods sector, companies are jockeying for position to capture a larger share of the growing market.
In these competitive dynamics, an analyst has adjusted the outlook for a key player in the industry, citing confidence in operating leverage and market share gains.
Telsey Advisory Group analyst Joseph Feldman maintained Dick’s Sporting Goods (NYSE:DKS) with an Outperform and raised the price forecast from $220 to $255.
Feldman reaffirmed his bullish stance on Dick’s, saying strong demand for athletic apparel, footwear, fitness, and outdoor gear continues to fuel momentum.
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He argued that Dick’s is winning market share through its national brand mix, differentiated private labels, attractive stores, off-mall locations with BOPIS and curbside pickup, and an expanding e-commerce platform enhanced by new technologies.
Feldman raised his price forecast, applying a 16x P/E multiple to his new 2026 EPS estimate of $15.49.
He expects Dick’s to deliver solid earnings growth in 2025 and accelerate further in 2026, even before factoring in the planned Foot Locker acquisition, which he views as a long-term value unlock.
The deal, adding roughly $8 billion in sales at a cost of approximately $2.5 billion, should broaden Dick’s geographic and demographic reach while scaling operations.
For the second quarter of 2025, Feldman now models EPS of $4.30 (versus $4.23 prior), with comps holding at 3.5% versus the FactSet consensus of 3.1%.
He forecasts operating margin contraction of 98 bps to 12.6%, narrower than earlier projections of 12.2%, while still above industry peers struggling with weaker results.
For 2025, Feldman maintained his EPS estimate at $14.40 (versus FactSet at $14.35), with a comp of 3.0% and an operating margin of 10.9%.
He commented that tariffs remain a headwind, especially on private-label goods (13% of 2024 sales sourced from China), but emphasized that Dick’s improved pricing tools and diversified sourcing strategy should cushion the impact.
Looking ahead, Feldman expects Dick’s to outperform the broader sporting goods category and continue to gain share, underscoring confidence in its growth trajectory.
Price Action: DKS shares are trading higher by 1.90% to $227.65 at last check Friday.
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