1Q26 Earnings Preview: Momentum in the Core vs. Early Proof Points on Foot Locker

研报英文原文证据摘录

1Q26 Earnings Preview: Momentum in the Core vs. Early Proof Points on Foot Locker

Investment Thesis

We see the current ~$219 share price as a compelling entry point into an increasingly differentiated sporting goods brand and the

largest omni-channel sports retailer in the U.S., with an expanding runway following last year’s $2.5bn Foot Locker acquisition that

also establishes a beachhead into international markets. We believe investors are overly focused on the perceived complexity of

integrating Foot Locker and are underappreciating the durability and momentum of the core Dick’s engine, as well as management’sCONSUMER ability to execute, led by executive chairman Ed Stack and President/CEO Lauren Hobart, whom we view as among the most

experienced and proven teams in retail with a track record of strong, consistent performance and disciplined M&A. In our view, the

market is also overlooking how Dick’s is helping define the next era of sporting goods retail through stronger brand partnerships,

premium in-store experiences, and a scaled digital platform positioned at the intersection of sport, culture, innovation, andRETAIL newness, alongside incremental category tailwinds in Golf, Padel, Pickleball, and Women’s. Additionally, we see the experiential

store pipeline as underappreciated, led by continued rollout of the high-performing House of Sport concept (with a clear path to

75–100 locations in the medium term) and the emerging Field House format across the core fleet. Looking ahead, we expect a

favorable catalyst backdrop from a multi-year sports cycle (including the 2026 World Cup and 2028 Olympics) and back-to-school

2026 as the first season with full Foot Locker merchandising control, while our model supports upside versus consensus with 2026EEQUITY