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1. Company Snapshot

1.a. Company Description

DICK'S Sporting Goods, Inc., together with its subsidiaries, operates as a sporting goods retailer primarily in the eastern United States.The company provides hardlines, including sporting goods equipment, fitness equipment, golf equipment, and hunting and fishing gear products; apparel; and footwear and accessories.It also owns and operates Sporting Goods, Golf Galaxy, Field & Stream, Public Lands, Going Going Gone!, and other specialty concept stores; and DICK'S House of Sports and Golf Galaxy Performance Center, as well as GameChanger, a youth sports mobile application for video streaming, scorekeeping, scheduling, and communications.


The company sells its product through e-commerce websites and mobile applications.As of January 29, 2022, it operated 730 DICK'S Sporting Goods stores.The company was formerly known as Dick'S Clothing and Sporting Goods, Inc.


and changed its name to DICK'S Sporting Goods, Inc.in April 1999.DICK'S Sporting Goods, Inc.


was incorporated in 1948 and is headquartered in Coraopolis, Pennsylvania.

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1.b. Last Insights on DKS

Breaking News: DICK'S Sporting Goods, Inc. recently reported strong legacy business performance with Q3 same-store sales up 5.7%. The company maintains a robust market positioning. Fisher Asset Management LLC lifted its holdings in DICK'S Sporting Goods by 155.8% during the quarter. The company also presented at the Morgan Stanley Global Consumer & Retail Conference 2025. Analysts view the $2.5 billion Foot Locker acquisition as a potential growth driver, but not the main focus. Valuation appears reasonable at 14x-16x earnings. Recommendation to buy is given by some analysts.

1.c. Company Highlights

2. DICK'S Sporting Goods' Q3 Earnings: A Mixed Bag with Foot Locker Integration

DICK'S Sporting Goods reported a consolidated net sales increase of 36.3% to $4.17 billion, driven by a $931 million sales contribution from Foot Locker and a 5.7% comp increase for the DICK'S business. The DICK'S business comps increased 5.7%, with growth in average ticket and transactions. However, consolidated gross profit was $1.38 billion or 33.13% of net sales, down 264 basis points, primarily due to the lower gross margin Foot Locker business. Non-GAAP EPS for the DICK'S business was $2.78, up from $2.75 in the prior year's quarter, while consolidated non-GAAP EPS was $2.07.

Publication Date: Nov -26

📋 Highlights
  • Combined Sales Growth:: Consolidated net sales surged 36.3% to $4.17 billion, driven by $931 million from Foot Locker and a 5.7% comp increase for DICK'S business.
  • DICK'S EPS Growth:: Non-GAAP EPS for DICK'S business rose 1.1% to $2.78, with operating income at $288.6 million (8.92% of sales).
  • Full-Year Outlook Raised:: DICK'S business now targets 3.5–4% comp sales growth and $14.25–$14.55 EPS, up from prior guidance.
  • Foot Locker Challenges:: Foot Locker faced a 4.7% pro forma comp decline and $46.3 million operating loss, with Q4 margin expected to drop 1,000–1,500 bps.
  • Turnaround Costs & Synergies:: $500–$750 million in charges anticipated for inventory cleanup and store restructuring, with $100–$125 million in synergies targeted by 2026.

Segment Performance

The DICK'S business non-GAAP operating income was $288.6 million or 8.92% of net sales, with non-GAAP earnings per diluted share of $2.78. In contrast, Foot Locker's pro forma comp sales decreased 4.7% in Q3, with a non-GAAP operating loss of $46.3 million. The company initiated pricing actions in late Q3 and expects to drive meaningful progress in Foot Locker in 2026.

Outlook and Guidance

The company raised its full-year outlook for the DICK'S business, expecting comp sales growth of 3.5% to 4% and EPS to be in the range of $14.25 to $14.55. For Foot Locker, the company expects a challenging fourth quarter, with pro forma comp sales to be down mid- to high single digits and margin rate down between 1,000 to 1,500 basis points. The acquisition is expected to be accretive to EPS in fiscal 2026, excluding one-time costs.

Turnaround Strategy for Foot Locker

The company is taking steps to turn around the Foot Locker business, including clearing out unproductive inventory, closing underperforming stores, and rightsizing assets. Management is confident in its long-term strategies to drive sustained sales and profit growth for both the DICK'S and Foot Locker businesses. As the CFO mentioned, "we have assembled a world-class management team... we are confident in our ability to drive top-line and bottom-line results."

Valuation and Estimates

With a P/E Ratio of 17.23 and an EV/EBITDA of 13.53, the market seems to have priced in a moderate growth expectation. Analysts estimate next year's revenue growth at 5.0%. However, the actual EPS of $2.07 came out significantly lower than estimates of $2.63, which may indicate some challenges ahead. The company's ROE of 27.0% and ROIC of 7.09% suggest a relatively healthy profitability profile.

3. NewsRoom

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Dick's Sporting Goods: Solid Core Performance And The Right Decision To Reset Foot Locker

Dec -04

Source: seekingalpha.com

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DICK'S Sporting Goods: The Story Beyond Foot Locker

Dec -03

Source: seekingalpha.com

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DICK'S Sporting Goods, Inc. (DKS) Presents at Morgan Stanley Global Consumer & Retail Conference 2025 Transcript

Dec -03

Source: seekingalpha.com

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Fisher Asset Management LLC Grows Stock Position in DICK’S Sporting Goods, Inc. $DKS

Dec -03

Source: defenseworld.net

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Cetera Investment Advisers Cuts Stock Position in DICK’S Sporting Goods, Inc. $DKS

Dec -01

Source: defenseworld.net

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DICK’S Sporting Goods, Inc. $DKS Shares Purchased by Advisors Asset Management Inc.

Dec -01

Source: defenseworld.net

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HALPER SADEH LLC ENCOURAGES IRHYTHM TECHNOLOGIES, INC. SHAREHOLDERS TO CONTACT THE FIRM TO DISCUSS THEIR RIGHTS

Nov -30

Source: prnewswire.com

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Trade Tracker: Stephanie Link adds to Dick's Sporting Goods

Nov -28

Source: youtube.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Hardlines

Expected Growth: 4.5%

The hardlines segment of DICK'S Sporting Goods is expected to grow driven by increasing participation in outdoor activities, rising health awareness, and advancements in technology leading to innovative products. Additionally, the growing popularity of team sports and fitness activities will contribute to the segment's growth.

Apparel

Expected Growth: 4.5%

Growing demand for athletic wear, increasing popularity of outdoor activities, and expanding product offerings are expected to drive the apparel segment's growth, with a forecast CAGR of 4.5%.

Footwear

Expected Growth: 4.5%

Growing demand for athletic footwear, increasing popularity of outdoor activities, and partnerships with top brands like Nike and Adidas are expected to drive the footwear segment's growth.

Other

Expected Growth: 4.5%

The outdoor gear and apparel segment is expected to grow driven by increasing consumer interest in outdoor activities, expansion of e-commerce channels, and strategic acquisitions such as Golf Galaxy and Field & Stream, which will enhance product offerings and customer reach.

7. Detailed Products

Athletic Apparel

DICK'S Sporting Goods offers a wide range of athletic apparel for men, women, and youth, including tops, bottoms, dresses, and outerwear from top brands like Nike, Under Armour, and Adidas.

Footwear

The company sells a vast selection of athletic footwear for various sports and activities, including running, basketball, soccer, football, and more, from brands like Nike, Adidas, and New Balance.

Team Sports Equipment

DICK'S Sporting Goods offers a wide range of team sports equipment, including baseball bats, gloves, and protective gear, soccer balls, footballs, and more from top brands like Easton, Louisville Slugger, and Wilson.

Fitness Equipment and Accessories

The company sells a variety of fitness equipment and accessories, including treadmills, ellipticals, free weights, yoga mats, and more from brands like ProForm, NordicTrack, and Bowflex.

Golf Equipment and Accessories

DICK'S Sporting Goods offers a wide selection of golf equipment and accessories, including clubs, bags, balls, and apparel from top brands like Callaway, TaylorMade, and Titleist.

Hunting and Outdoor Gear

The company sells a variety of hunting and outdoor gear, including firearms, ammunition, camping equipment, and apparel from brands like Remington, Winchester, and The North Face.

Bicycles and Accessories

DICK'S Sporting Goods offers a range of bicycles and accessories, including road bikes, mountain bikes, helmets, and apparel from brands like Schwinn, Mongoose, and GT.

Sports Training Equipment

The company sells a variety of sports training equipment, including agility ladders, resistance bands, and jump ropes, from brands like SKLZ and TRX.

8. DICK'S Sporting Goods, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

While there are some substitutes for DICK'S Sporting Goods, such as online retailers like Amazon, the company's strong brand recognition and wide range of products help to mitigate this threat.

Bargaining Power Of Customers

DICK'S Sporting Goods has a large customer base, but individual customers do not have significant bargaining power due to the company's size and market presence.

Bargaining Power Of Suppliers

DICK'S Sporting Goods relies on a diverse range of suppliers, which reduces the bargaining power of individual suppliers. However, the company may still be vulnerable to supply chain disruptions and price increases.

Threat Of New Entrants

The sporting goods retail industry has high barriers to entry, including significant capital requirements and established relationships with suppliers. This makes it difficult for new entrants to compete with DICK'S Sporting Goods.

Intensity Of Rivalry

The sporting goods retail industry is highly competitive, with several large players competing for market share. DICK'S Sporting Goods faces intense rivalry from companies like Academy Sports + Outdoors and Bass Pro Shops.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 43.02%
Debt Cost 4.24%
Equity Weight 56.98%
Equity Cost 12.44%
WACC 8.91%
Leverage 75.50%

11. Quality Control: DICK'S Sporting Goods, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
DICK'S Sporting Goods

A-Score: 5.6/10

Value: 4.3

Growth: 6.7

Quality: 5.5

Yield: 5.0

Momentum: 7.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Williams-Sonoma

A-Score: 5.5/10

Value: 2.8

Growth: 7.2

Quality: 7.5

Yield: 3.0

Momentum: 8.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
GPC

A-Score: 5.5/10

Value: 3.6

Growth: 5.1

Quality: 4.4

Yield: 6.0

Momentum: 5.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Casey's General Stores

A-Score: 5.4/10

Value: 2.9

Growth: 7.0

Quality: 4.9

Yield: 0.0

Momentum: 9.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Academy Sports

A-Score: 5.0/10

Value: 7.7

Growth: 6.6

Quality: 5.5

Yield: 1.0

Momentum: 5.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Murphy USA

A-Score: 4.3/10

Value: 4.2

Growth: 8.0

Quality: 4.1

Yield: 1.0

Momentum: 1.5

Volatility: 7.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

236.71$

Current Price

236.71$

Potential

-0.00%

Expected Cash-Flows