Dick's Sporting Goods Navigates Tariff Pressures, Yet Foot Locker Deal Lingers As 'An Overhang'

Shares of Dick’s Sporting Goods Inc. (NYSE:DKS) rose in early trading on Thursday despite the company reporting an earnings miss for the first quarter on Wednesday.

The announcement came amid an exciting earnings season. Here are some key analyst takeaways.

JPMorgan On Dick’s Sporting Goods

Analyst Christopher Horvers reiterated a Neutral rating, while cutting the price target from $224 to $195.

Dick’s Sporting Goods' fundamentals remain strong, although the acquisition of Foot Locker Inc (NYSE:FL) continues to be "an overhang," Horvers said in a note. This was the fifth consecutive quarter in which the company generated over 4% comp, which came in at +4.8%, driven by strength in both ticket and traffic, he added.

Management maintained their full-year guide of 1%-3% comps and earnings of $13.80-$14.40 per share, citing strength in the first quarter, confidence in their strategic initiatives, and "operational strength against a complex macro environment," the analyst stated.

The company believes it can meet its targets "regardless of the tariff situation given the strength of its assortment and business momentum, diversification efforts, strong partnerships with vendors, and DKS's strong pricing capabilities," he further wrote.

Check out other analyst stock ratings.

BofA Securities On Dick’s Sporting Goods

Analyst Robert Ohmes maintained a Buy rating and price target of $250.

Dick’s Sporting Goods reported adjusted earnings of $3.37 per share and comp of 4.5%, in-line with its preannouncement, driven by growth in ticket and traffic, Ohmes said. Gross margin came in at 36.7%, up 41 bps year-on-year, the analyst noted.

The company plans to acquire Foot Locker for $24 per share or $2.5 billion, with the deal expected to close in the back half of 2025, Ohmes stated. "DKS expects $100-125mn in cost synergies (procurement & sourcing efficiencies) over the medium term and the acquisition to be accretive to F27E EPS," he wrote.

Telsey Advisory Group On Dick’s Sporting Goods

Analyst Joseph Feldman reaffirmed an Outperform rating and price target of $220.

Dick’s Sporting Goods reported "impressive results again," despite the tougher consumer environment, Feldman said. Its comp remained strong, "reflecting solid demand for sporting goods and continued market share gains," he wrote.

The analyst stated that management maintained their full-year comp and earnings guidance at 1.0%-3.0% and $13.80-$14.40 per share, respectively. He added that many investors are skeptical about the Foot Locker deal, given Dick’s Sporting Goods' strong position in the U.S. sporting goods market and considering the target is structurally challenged.

DKS Price Action: Shares of Dick’s Sporting Goods had risen by 0.3% to $177.74 at the time of publication on Thursday.

Read More:

• What’s Next For Foot Locker? Analyst Says Dick’s Deal Is Timely

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