DKS Stock Forecast & Price Target

Sales for Dick's Sporting Goods surged by 36.3% year-over-year, reaching $4.168 billion, significantly exceeding previous guidance and showing robust growth in both their core and acquired business segments. The company's guidance for future sales forecasts an increase of 3.8%-4.1%, indicating a positive trajectory towards a projected total of $13.95 billion to $14.00 billion, reflecting solid momentum in its overall performance. Additionally, Dick's has strategically enhanced its inventory management and omnichannel offerings, alongside a notable expansion in its partnership with Nike, positioning the company for sustained growth and competitive advantage in the retail landscape.

The financial outlook for Dick's Sporting Goods appears negative primarily due to disappointing performance from its newly acquired Foot Locker division, which reported a 4.7% comp decline in 3Q25 on a proforma basis, attributing the decrease to weaker demand for its product assortment. Additionally, Foot Locker's reliance on Nike products has diminished, with penetration dropping from over 70% in 2019 to nearly 60%, leading to expected gross margin declines of 1,000-1,500 basis points on a GAAP basis. Furthermore, anticipated operating income for 4Q25 is projected to be "slightly negative," with significant reductions in low-quality inventory expected to contribute to a projected comp decline in the low to high single digits.