Update shared on13 Sep 2025
Fair value Increased 1.32%Analysts have raised their price target for DICK'S Sporting Goods to $240.33, citing expected sales growth and long-term earnings potential from the Foot Locker acquisition despite integration risks, near-term margin pressure, and concerns around Foot Locker's turnaround.
Analyst Commentary
- Bullish analysts see the Foot Locker acquisition creating a "category killer" with increased buying power, leading to mid-single-digit sales growth and margin expansion for the combined company.
- There is broad recognition of ongoing business momentum, with the company issuing prudent guidance amidst uncertainty in the second half of the year and potential gross margin pressure from tariffs and promotions.
- Some analysts suggest the combined company can generate solid earnings growth long-term, though Dick's standalone growth is expected to outpace the medium-term profile when factoring in Foot Locker's current weaker performance.
- Bearish analysts express caution about lofty consensus estimates and uncertainty regarding Foot Locker's turnaround, as well as the dilutive impact of equity financing for the acquisition.
- Despite near-term uncertainties, the consensus is that Dick's Sporting remains positioned for strong performance, supported by its operational execution and growth potential post-acquisition.
What's in the News
- Senator Elizabeth Warren has urged the FTC and DOJ to closely scrutinize and potentially block DICK'S Sporting Goods' proposed $2.4 billion acquisition of Foot Locker amid concerns about job losses, price increases, and reduced competition in the sneaker and athletic shoe market (CNBC).
- DICK'S Sporting Goods raised its 2025 guidance, now expecting comparable sales growth of 2.0%-3.5% (up from 1.0%-3.0%), net sales of $13.75-$13.95 billion, and EPS of $13.90-$14.50 (previously $13.80-$14.40).
- The company was dropped from multiple Russell growth indices as of late June 2025, including the Russell 1000 Growth, Russell 3000 Growth, and Russell Midcap Growth indices.
- DICK'S has extended its WNBA partnership through 2028, continuing as the Official Sporting Goods Retailer and expanding involvement in youth basketball initiatives and apparel, reaffirming its commitment to supporting women's sports.
- DICK'S announced retail expansion of JackRabbit's micro ebikes in select stores and online, and launched Cookie Jar & A Dream Studios, its new in-house content unit, to strengthen brand storytelling through sports documentaries.
Valuation Changes
Summary of Valuation Changes for DICK'S Sporting Goods
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $237.20 to $240.33.
- The Consensus Revenue Growth forecasts for DICK'S Sporting Goods has significantly risen from 2.9% per annum to 7.8% per annum.
- The Net Profit Margin for DICK'S Sporting Goods has significantly fallen from 8.75% to 7.80%.
Disclaimer
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