Dick‘s Sporting Goods Inc (DKS.N): All Eyes on Core Biz in 2Q; All Ears on FL Early Back to School Comments

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11 Aug 2026 05:00:00 ET │ 20 pages

Dick's Sporting Goods Inc (DKS.N)

All Eyes on Core Biz in 2Q; All Ears on FL Early Back to School

Comments

CITI'S TAKE

We expect 2Q EPS (reporting 8/25) of $3.76 vs cons of $3.75 (no 2Q

guidance provided), based on comps +4.1% (vs cons +3.8%). We model

Dick’s comps +5.5% (vs cons +4.7%) and Foot Locker comps –2.8% (vs cons

+0.4%). We believe the comp bar for DKS is +5% and for FL is down LSDMSD%. We expect mgmt to reiterate prior guidance for F26 EPS of $13.5014.50 (vs cons $14.36) based on sales +28-30% (vs cons +29.8%). We

believe mgmt will remain confident about momentum and broad-based

strength in the core business, but the key will be what mgmt says about

early BTS selling and performance of Fast Break stores at Footlocker, and if

anything changes in terms of expecting a 2H sales inflection at FL. Following

stock weakness over the past several weeks, we believe the risk/reward

skews positive into earnings.

Ests & TP: We raised our 2Q EPS from $3.50 to $3.76 on higher GM (from 33.5% to

33.8% vs cons of 33.8%) and lower SG&A (from +67% to +63% vs cons of 63%),

more than offsetting lower comps (from +6% to +4% vs cons of +3.8%). For 2Q we

model Dick’s comps of +5-6% vs cons of +4.7% and FL of down 2-3% vs cons of

+0.4% and impld guide of -LSD% to +LSD%. We held our F26E at $14.97 (reduced

3Q/4Q slightly offsetting the 2Q raise) vs cons of $14.36 and guide of $13.50-14.50.

For F26, we model total sales +29.6%, Dick’s comps +3.8% (vs cons of +3.9% and

guide of +2.5-4.0%) and Foot Locker comps +1.0% (vs cons of +2.3% and guide of

+1.5-3.0%), and total EBIT margin of 8.5% (vs cons of 8.1% and impld guide of 7.7%8.1%). We also maintain our F27E at $17.25 and our $280 TP, which represents an

F26E/F27E P/E multiple of 18.5x/16.2x.

n

Buy

Price (10 Aug 26 16:00)

US$214.11

Target price

US$280.00

Expected share price return

30.8%

Expected dividend yield

1.9%

Expected total return

32.6%

Market Cap

US$19,163M

Price Performance

(RIC: DKS.N, BB: DKS US)

Guidance: We expect mgmt to reiterate prior guidance: DKS F26 EPS of $13.5014.50 (vs cons $14.36). Sales of +28-30% (vs cons +29.8%). EBIT margin expected

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