Dick's Sporting Goods' Momentum Remains 'Solid' With Topline Growth, Truist Says

MT Newswires Live11-27

Dick's Sporting Goods' (DKS) core business remains "solid" with topline growth and margin strength, despite a choppy macro environment, Truist Securities said in a Wednesday note.

The brokerage said that the company saw growth across all key categories and all income demographics in Q3, and that its implied guidance of comparable sales decelerate to ~0.5% in Q4 will likely prove "conservative."

With Dick's Sporting Goods opening all 16 of its House of Sport stores for fiscal 2025 ahead of the holiday season, Truist said it expects these new stores to present meaningful opportunities for expansion of DKS' GameChanger and Retail Media businesses.

Truist further said that the company is targeting the back-to-school selling season as an inflection point for meaningful progress in the Foot Locker business, as the retailer remains "highly confident" in Foot Locker being accretive to earnings per share in 2026.

The firm maintained its buy rating on the company with a $275 price target.

Price: 209.28, Change: +2.55, Percent Change: +1.23

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment