Dick’s Sporting Goods Inc. (NYSE:DKS) stock rose Wednesday after delivering stronger-than-expected results in its core business and lifting full-year guidance.
The newly acquired Foot Locker unit posted a steep profit drop that underscores the heavy lifting still ahead in the turnaround.
On Tuesday, the company reported third-quarter sales of $4.168 billion (+36.3% year over year), which outpaced the Street view of $3.546 billion.
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Dick’s Sporting Goods raised its 2025 GAAP EPS forecast to $14.25–$14.55 from $13.90–$14.50. The retailer also lifted its 2025 sales outlook to $13.95 billion–$14 billion from $13.75 billion–$13.95 billion.
Analysts Weigh In
Telsey Advisory analyst Cristina Fernández reiterated the Outperform rating on the stock, lowering the price forecast from $255 to $245.
Fernández said the Foot Locker acquisition is creating near-term noise, and results are softer than she expected.
She believes Dick’s is uniquely positioned to improve that business, given its sector expertise and strong brand ties.
She also cited Dick’s track record of execution as another advantage in turning around the acquired operations.
Fernández said the core Dick’s business remains well-positioned with diversified merchandising and consistently strong full-price selling.
She added that its omnichannel model benefits from off-mall locations, supporting traffic and profitability across stores and online.
For 2025, Fernández now estimates EPS of $12.95, down from $14.50 and below the $14.32 FactSet consensus. She now models 4% comparable sales growth for 2025, up from her prior estimate of 3.6%.
For 2026, she models EPS of $15, trimmed from a prior estimate of $15.50 per share.
Guggenheim analyst Steven Forbes reiterated the Neutral rating on the stock.
Forbes said Foot Locker’s pro forma LTM adjusted EBIT now looks set to finish 2025 near zero. He noted that compares with about $200 million in 2024, underscoring the deterioration in profitability.
As a result, the analyst sees less clarity on offsetting dilution from issuing 9.6 million new shares.
He also flagged higher interest expense on the $380 million senior note assumed in the transaction.
Forbes added that lost interest income on cash outlays over 12 to 15 months compounds the drag.
The analyst trimmed consolidated EPS estimates and now sees buy-side cases around $13 to $15.50.
Regarding outlook, although one-year comparable sales become tougher in the fourth quarter, management called its 0–1.5% outlook conservative.
Second, management reiterated that second-half 2025 core segment gross margin gains should exceed the first-half improvement.
Taken together, those comments led the analyst to expect solid fourth-quarter 2025 operating performance for Dick’s.
He therefore raised his underlying expectations for the core business segment heading into next year.
Price Action: DKS shares were trading higher by 2.19% to $211.26 at last check Wednesday.
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