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
Comments