Williams downgrades Dick’s Sporting on tariff impact into earnings

Williams Trading analyst Sam Poser downgraded Dick’s Sporting (DKS) to Hold from Buy with a price target of $200, down from $243. The firm cut estimates and price targets across its retail coverage, reflecting an average reduction of the price-to-earnings multiple by 20.4%, to reflect uncertainty around the impact of tariffs on margins, pricing, and demand. Williams would not be surprised if all the companies in its coverage either do not provide forward guidance or withdraw forward guidance. Channel checks suggest the additional 145% tariff on goods from China has frozen product shipments to the U.S., challenging sales and margin opportunities for those brands that rely on China for its products, and do a large percent of sales in the U.S., the analyst tells investors in a research note. Williams anticipates Dick’s annual same-store sales and earnings will miss guidance, as store traffic slows and increased costs hurt margins, notably on its hard goods and equipment, much of which is sourced from China.