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Dick's Sporting Goods (DKS)
NYSE:DKS
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Dick's Sporting Goods (DKS) AI Stock Analysis

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DKS

Dick's Sporting Goods

(NYSE:DKS)

Rating:78Outperform
Price Target:
$247.00
▲(10.86% Upside)
Dick's Sporting Goods has a strong financial foundation, supported by effective cost management and strategic growth initiatives, including the acquisition of Foot Locker. The stock shows positive technical momentum, although some caution is advised due to overbought signals. The company's valuation is reasonable, and recent corporate events further enhance its market position.
Positive Factors
Business Expansion
The expansion of House of Sport stores is expected to drive traffic and increase sales.
Market Position
Dick's is one of the strongest businesses in Retail from a top-line perspective.
Vendor Partnerships
Key vendors like Nike, HOKA, and New Balance are expected to provide premium innovations, potentially boosting sales for Dick's Sporting Goods.
Negative Factors
Acquisition Distraction
The pending acquisition of Foot Locker will prove to be a distraction to the leadership, despite management's claims to the contrary.
Investment Concerns
Investor concerns exist over the financial impact of investments in House of Sport stores.
Sales Deceleration
Quarter-to-date observed sales decelerated in the first two weeks of June, which could reflect greater precipitation compared to last year.

Dick's Sporting Goods (DKS) vs. SPDR S&P 500 ETF (SPY)

Dick's Sporting Goods Business Overview & Revenue Model

Company DescriptionDick's Sporting Goods (DKS) is a leading omnichannel retailer in the sporting goods industry, offering a wide range of products and services for various sports and outdoor activities. Founded in 1948, the company operates physical retail locations across the United States, as well as a robust online platform. Its core product offerings include athletic apparel, footwear, equipment for team sports, fitness, outdoor recreation, and active lifestyle accessories. Dick's Sporting Goods is committed to providing quality merchandise and exceptional customer service, catering to athletes and outdoor enthusiasts of all levels.
How the Company Makes MoneyDick's Sporting Goods generates revenue primarily through the sale of sporting goods and related products in its retail stores and online. Key revenue streams include merchandise sales from sporting apparel, footwear, fitness equipment, and outdoor gear. The company also benefits from private label brands, which typically offer higher margins than national brands. Additionally, Dick's Sporting Goods has developed partnerships with various sports brands to create exclusive products, enhancing their product offerings and attracting more customers. Seasonal promotions, loyalty programs, and a strong e-commerce presence further contribute to the company's revenue by driving customer engagement and repeat purchases.

Dick's Sporting Goods Key Performance Indicators (KPIs)

Any
Any
Comparable Sales Percentage
Comparable Sales Percentage
Measures sales growth at existing stores, indicating the company's ability to increase revenue without opening new locations. It reflects customer loyalty and operational efficiency.
Chart InsightsDick's Sporting Goods has shown a steady recovery in comparable sales since early 2023, with a notable uptick in late 2024. This aligns with their strategic initiatives, including digital and in-store investments, and the anticipated benefits from acquiring Foot Locker. Despite macroeconomic uncertainties and increased SG&A expenses, the company remains optimistic, projecting 1-3% same-store sales growth for 2025. The acquisition is expected to enhance global market participation and drive cost synergies, potentially offsetting challenges like higher tax rates and increased inventory levels.
Data provided by:Main Street Data

Dick's Sporting Goods Earnings Call Summary

Earnings Call Date:May 28, 2025
(Q1-2025)
|
% Change Since: 28.74%|
Next Earnings Date:Aug 28, 2025
Earnings Call Sentiment Positive
DICK'S Sporting Goods had a strong first quarter with notable sales growth, strategic acquisitions, and e-commerce expansion. However, challenges such as macroeconomic uncertainties, increased SG&A expenses, and higher tax rates were highlighted. The company remains optimistic about future growth and the benefits of the Foot Locker acquisition.
Q1-2025 Updates
Positive Updates
Strong Q1 Performance
DICK'S Sporting Goods reported a consolidated sales increase of 5.2% to $3.17 billion with Q1 comps increasing 4.5%. This represents a 9.8% two-year comp stack and a 13.4% three-year comp stack.
Foot Locker Acquisition
DICK'S announced plans to acquire Foot Locker, expanding their reach to over 3,200 stores worldwide. The acquisition is expected to be accretive to EPS in the first full fiscal year post-close.
E-commerce Growth
The company delivered strong e-commerce growth in Q1, outpacing total company growth, driven by investments in technology and marketing.
Game Changer and DICK'S Media Network
Game Changer had over 6.5 million unique active users in Q1, a 28% year-over-year increase. The DICK'S Media Network continues to deliver strong growth.
Gross Margin Expansion
First quarter gross margin expanded by 41 basis points due to higher merchandise margins.
Negative Updates
Macroeconomic Concerns
The company is operating in an increasingly complex macroeconomic environment with shifting trade policies and a cautious consumer mindset.
SG&A Expense Deleverage
SG&A expenses increased 7% to $791.2 million and deleveraged 42 basis points compared to last year's non-GAAP results.
Higher Tax Rate
The Q1 tax rate grew from 19.6% last year to approximately 24%, impacting earnings.
Inventory Increase
Quarter-end inventory levels increased by 12% compared to last year, which may pose challenges.
Company Guidance
During the DICK'S Sporting Goods First Quarter 2025 Earnings Conference Call, the company shared guidance for the fiscal year 2025. They reaffirmed their expectations for same-store sales growth in the range of 1% to 3%, with earnings per share (EPS) anticipated to be between $13.80 and $14.40. The company expects a gross margin improvement of approximately 75 basis points at the midpoint. DICK'S plans to invest strategically in digital, in-store, and marketing initiatives while maintaining a strong inventory position. They reported a 5.2% increase in consolidated sales to $3.17 billion and a 4.5% increase in comparable store sales. The company also highlighted the expected accretive impact of their planned acquisition of Foot Locker, anticipating meaningful cost synergies and enhanced global market participation.

Dick's Sporting Goods Financial Statement Overview

Summary
Dick's Sporting Goods demonstrates strong financial health with consistent revenue and profit growth, effective cost management, and a solid equity position. However, concerns exist around rising operational costs and capital expenditures affecting free cash flow.
Income Statement
85
Very Positive
Dick's Sporting Goods has demonstrated strong revenue growth over the years, with a TTM revenue of $13.6 billion, reflecting a positive growth trajectory from previous years. The gross profit margin stands robustly at 36.0% TTM, showcasing effective cost management. Net profit margin of 8.5% TTM indicates healthy profitability. However, a slight decline in EBITDA margin from 14.7% to 13.7% TTM suggests rising operational costs that need monitoring.
Balance Sheet
78
Positive
The balance sheet of Dick's Sporting Goods reveals a solid equity position with a debt-to-equity ratio of 1.50 TTM, indicating manageable leverage levels. With a return on equity of 37.8% TTM, the company effectively generates profits from shareholders' investments. Although the equity ratio of 29.2% suggests a moderate reliance on debt, the overall financial stability remains strong.
Cash Flow
70
Positive
Cash flow analysis shows a decrease in free cash flow from $509 million to $348 million TTM, primarily due to increased capital expenditures. The operating cash flow to net income ratio of 1.09 TTM reflects adequate cash generation relative to earnings, but the decline in free cash flow growth rate raises concerns about future liquidity if capital expenditures persist at current levels.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue13.60B13.44B12.98B12.37B12.29B9.58B
Gross Profit4.90B4.83B4.53B4.28B4.71B3.05B
EBITDA1.98B1.97B1.77B1.84B2.37B1.09B
Net Income1.15B1.17B1.05B1.04B1.52B530.25M
Balance Sheet
Total Assets10.43B10.46B9.31B8.99B9.04B7.75B
Cash, Cash Equivalents and Short-Term Investments1.04B1.69B1.80B1.92B2.64B1.66B
Total Debt4.57B4.49B4.26B4.21B4.51B3.15B
Total Liabilities7.38B7.26B6.69B6.47B6.94B5.41B
Stockholders Equity3.05B3.20B2.62B2.52B2.10B2.34B
Cash Flow
Free Cash Flow348.40M509.27M939.91M557.81M1.31B1.33B
Operating Cash Flow1.26B1.31B1.53B921.88M1.62B1.55B
Investing Cash Flow-1.02B-796.56M-614.68M-392.89M-343.98M-224.16M
Financing Cash Flow-880.13M-626.13M-1.04B-1.25B-287.72M260.06M

Dick's Sporting Goods Technical Analysis

Technical Analysis Sentiment
Positive
Last Price222.81
Price Trends
50DMA
202.36
Positive
100DMA
194.62
Positive
200DMA
204.99
Positive
Market Momentum
MACD
4.95
Negative
RSI
62.65
Neutral
STOCH
87.02
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DKS, the sentiment is Positive. The current price of 222.81 is above the 20-day moving average (MA) of 215.67, above the 50-day MA of 202.36, and above the 200-day MA of 204.99, indicating a bullish trend. The MACD of 4.95 indicates Negative momentum. The RSI at 62.65 is Neutral, neither overbought nor oversold. The STOCH value of 87.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DKS.

Dick's Sporting Goods Risk Analysis

Dick's Sporting Goods disclosed 44 risk factors in its most recent earnings report. Dick's Sporting Goods reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Dick's Sporting Goods Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$17.85B15.9240.22%2.08%3.33%15.47%
75
Outperform
$8.92B9.0217.79%2.83%-5.90%-11.16%
73
Outperform
$117.61B57.2943.83%38.27%46.21%
72
Outperform
$3.64B10.1020.14%0.88%-3.57%-17.43%
63
Neutral
AU$3.11B28.6925.32%4.52%2.39%-30.11%
52
Neutral
$169.10M-4.61%6.05%29.58%
49
Neutral
$32.77M-51.44%3.55%-8.04%-263.28%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DKS
Dick's Sporting Goods
223.97
4.34
1.98%
BGFV
Big 5 Sporting Goods
1.42
-0.50
-26.04%
MELI
Mercadolibre
2,392.30
414.33
20.95%
VIPS
Vipshop
16.96
3.31
24.25%
BZUN
Baozun
2.77
0.47
20.43%
ASO
Academy Sports and Outdoors
54.02
-0.12
-0.22%

Dick's Sporting Goods Corporate Events

M&A TransactionsRegulatory Filings and Compliance
Dick’s Sporting Goods Pauses Merger for FTC Review
Neutral
Jul 24, 2025

On May 15, 2025, Dick’s Sporting Goods entered into a Merger Agreement with Foot Locker, planning to acquire the company. On July 23, 2025, Dick’s Sporting Goods withdrew its pre-merger notification to allow the Federal Trade Commission more time for antitrust review, with plans to resubmit the notification on July 25, 2025. This move is a standard procedure in merger transactions to ensure compliance with regulatory requirements. The merger is expected to be completed in the second half of 2025, pending regulatory approvals and shareholder agreement.

The most recent analyst rating on (DKS) stock is a Hold with a $185.00 price target. To see the full list of analyst forecasts on Dick’s Sporting Goods stock, see the DKS Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
DICK’S Sporting Goods Announces Exchange Offer Results
Positive
Jun 23, 2025

On June 23, 2025, DICK’S Sporting Goods announced the results of early participation in its Exchange Offer and Consent Solicitation related to its anticipated acquisition of Foot Locker, Inc. The company extended the offer to eligible holders to exchange Foot Locker’s outstanding notes for new notes issued by DICK’S, with a significant number of consents received to adopt proposed amendments to the Foot Locker Notes. The amendments eliminate many restrictive covenants and will become operative upon the closing of the acquisition or settlement of the exchange offer. This strategic move is part of DICK’S efforts to streamline operations and strengthen its market position.

The most recent analyst rating on (DKS) stock is a Hold with a $185.00 price target. To see the full list of analyst forecasts on Dick’s Sporting Goods stock, see the DKS Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Dick’s Sporting Goods Holds Annual Stockholder Meeting
Neutral
Jun 13, 2025

On June 11, 2025, Dick’s Sporting Goods held its Annual Meeting where stockholders voted on five proposals. The stockholders elected twelve directors, approved executive compensation, ratified Deloitte & Touche LLP as the accounting firm for 2025, and approved an amendment to increase authorized shares. However, a proposal for a report on affirmative action risks was not approved.

The most recent analyst rating on (DKS) stock is a Hold with a $185.00 price target. To see the full list of analyst forecasts on Dick’s Sporting Goods stock, see the DKS Stock Forecast page.

Private Placements and FinancingM&A TransactionsBusiness Operations and Strategy
Dick’s Sporting Goods Secures $2 Billion Credit Facility
Positive
Jun 6, 2025

On June 6, 2025, DICK’S Sporting Goods entered into a new $2.0 billion unsecured revolving credit facility with Wells Fargo Bank, replacing its existing credit agreement. This move aims to enhance financial flexibility and support the company’s operational needs. Additionally, DICK’S announced an exchange offer for Foot Locker’s senior notes as part of its anticipated acquisition of Foot Locker, Inc., which includes soliciting consents for amendments to the indenture governing these notes. This strategic acquisition is expected to strengthen DICK’S market position in the sporting goods industry.

The most recent analyst rating on (DKS) stock is a Hold with a $185.00 price target. To see the full list of analyst forecasts on Dick’s Sporting Goods stock, see the DKS Stock Forecast page.

M&A TransactionsDividendsBusiness Operations and StrategyFinancial Disclosures
Dick’s Sporting Goods Announces Quarterly Dividend
Positive
May 28, 2025

On May 27, 2025, Dick’s Sporting Goods announced a quarterly dividend of $1.2125 per share, payable on June 27, 2025. The company reported record first-quarter sales with a 4.5% increase in comparable sales and reaffirmed its 2025 outlook. Dick’s also plans to acquire Foot Locker, aiming to become a global leader in the sports retail industry. The first quarter saw the opening of new store locations and a strong earnings performance, demonstrating the company’s operational strength and strategic momentum.

The most recent analyst rating on (DKS) stock is a Hold with a $185.00 price target. To see the full list of analyst forecasts on Dick’s Sporting Goods stock, see the DKS Stock Forecast page.

M&A Transactions
Dick’s Sporting Goods Announces Merger with Foot Locker
Neutral
May 15, 2025

On May 15, 2025, Dick’s Sporting Goods announced a merger agreement with Foot Locker, where Foot Locker will become a wholly owned subsidiary of Dick’s. The merger involves converting Foot Locker’s shares into cash or stock of Dick’s, with the transaction subject to various closing conditions, including shareholder approval and antitrust clearances. The merger aims to enhance Dick’s market position and operational capabilities, with potential implications for stakeholders, including changes in stock and cash considerations for Foot Locker’s shareholders.

The most recent analyst rating on (DKS) stock is a Buy with a $252.00 price target. To see the full list of analyst forecasts on Dick’s Sporting Goods stock, see the DKS Stock Forecast page.

M&A TransactionsFinancial Disclosures
Dick’s Sporting Goods to Acquire Foot Locker
Positive
May 15, 2025

On May 15, 2025, DICK’S Sporting Goods announced a definitive merger agreement to acquire Foot Locker, valued at approximately $2.4 billion in equity and $2.5 billion in enterprise value. This strategic acquisition is expected to enhance DICK’S global reach and drive significant value for stakeholders, pending regulatory and shareholder approvals, with an anticipated closing in the second half of 2025. Additionally, DICK’S reported a 4.5% growth in comparable sales for the first quarter of 2025, reflecting a strong start to the year and positioning the company favorably for the proposed acquisition.

The most recent analyst rating on (DKS) stock is a Buy with a $252.00 price target. To see the full list of analyst forecasts on Dick’s Sporting Goods stock, see the DKS Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 24, 2025