Dick's Sporting Goods(DKS)

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Dick's Sporting Goods Q1 Preview: All Eyes On Foot Locker Deal, Tariff Impact
Benzinga· 2025-05-27 17:11
Core Viewpoint - Dick's Sporting Goods is expected to provide more details regarding its acquisition of Foot Locker, Inc. during the upcoming first-quarter financial results announcement, with analysts closely monitoring the implications of this deal [1]. Earnings Estimates - Analysts anticipate Dick's Sporting Goods will report first-quarter revenue of $3.59 billion, an increase from $3.02 billion in the same quarter last year [1]. - The expected earnings per share for the first quarter is $4.34, up from $3.30 in the previous year [2]. Analyst Sentiment - Following the acquisition announcement, analysts have lowered their price targets for Dick's Sporting Goods stock, with Telsey analyst Joseph Feldman reducing the target from $250 to $220 while maintaining an Outperform rating [3]. - There is skepticism among investors regarding the acquisition, particularly due to Foot Locker's reliance on Nike, which constitutes approximately 60% of its sales [4]. Key Items to Watch - Analysts and investors will be focused on the impact of tariffs on Dick's Sporting Goods, as the company is expected to address this in its financial results [5][6]. - The company has initiated a five-year share buyback program of up to $3 billion, which could help alleviate concerns stemming from the acquisition and tariffs [7]. - Dick's Sporting Goods is also increasing its interest in trading cards, highlighted by a recent auction win for a rare baseball card valued at $1.1 million [7]. Stock Performance - As of the latest trading session, Dick's Sporting Goods stock rose by 3.92% to $173.81, with a year-to-date decline of approximately 24% [8].
Seeking Clues to Dick's (DKS) Q1 Earnings? A Peek Into Wall Street Projections for Key Metrics
ZACKS· 2025-05-23 14:21
Core Insights - Analysts project Dick's Sporting Goods (DKS) will report quarterly earnings of $3.34 per share, a 1.2% increase year over year, with revenues expected to reach $3.12 billion, reflecting a 3.4% increase from the same quarter last year [1] - The consensus EPS estimate has been revised upward by 0.5% over the past 30 days, indicating a collective reassessment by analysts [2] - Revisions to earnings estimates are significant indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3] Financial Metrics - Comparable store sales are expected to increase by 3.0% year over year, down from 5.3% reported in the same quarter last year [5] - The total number of stores at the end of the period (EOP) is projected to be 865, compared to 857 in the same quarter last year [5] - Total square footage is forecasted to reach 44.00 million square feet, up from 42.9 million square feet reported in the same quarter last year [6] - The number of Dick's Sporting Goods stores is expected to be 725, slightly up from 723 in the same quarter last year [6] - The number of Golf Galaxy/Specialty Concept Stores is projected to remain at 134, consistent with the previous year's figure [7] Market Performance - Shares of Dick's have decreased by 9% over the past month, contrasting with a 10.7% increase in the Zacks S&P 500 composite [8] - Dick's Sporting Goods holds a Zacks Rank of 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [8]
How To Earn $500 A Month From Dick's Sporting Goods Stock Ahead Of Q1 Earnings
Benzinga· 2025-05-23 12:49
DICK’S Sporting Goods, Inc. DKS will release earnings results for the first quarter, before the opening bell on Wednesday, May 28.Analysts expect the company to report quarterly earnings of $4.33 per share and quarterly revenue of $3.6 billion, according to data from Benzinga Pro.On May 15, Foot Locker, Inc. FL disclosed a definitive deal to be acquired by Dick's Sporting Goods. The deal values Foot Locker's equity at around $2.4 billion and its enterprise at about $2.5 billion.With the recent buzz around D ...
173亿斩获“美国滔搏”,值吗?
3 6 Ke· 2025-05-23 12:05
Core Viewpoint - The sports capital market is experiencing a surge in significant transactions, highlighted by DICK'S Sporting Goods' acquisition of Foot Locker for $2.4 billion, indicating strategic moves to adapt to changing consumer demands and global trade dynamics [1][2]. Group 1: Acquisition Details - DICK'S Sporting Goods confirmed the acquisition of Foot Locker for $2.4 billion, with a combination of cash and new debt, valuing the company at $2.5 billion [1]. - The acquisition will allow Foot Locker to operate as an independent business unit while retaining its brand identity, pending antitrust review [1][2]. - This acquisition is part of DICK'S ongoing strategy of expanding through mergers and acquisitions, having previously acquired several sports retail companies [2]. Group 2: Market Expansion and Strategy - The acquisition aims to enhance DICK'S market presence, particularly in overseas markets, leveraging Foot Locker's extensive global network of over 2,400 stores across 22 countries [4]. - DICK'S anticipates that the merger will improve its ability to serve global consumers and expand market opportunities, especially in light of rising costs and changing consumer behavior due to tariffs and economic conditions [4][5]. - The deal is expected to provide DICK'S with stronger bargaining power with major brands like Nike, enhancing its competitive position in the market [8]. Group 3: Investor Sentiment and Market Reaction - Investor reaction to the acquisition has been cautious, with DICK'S stock experiencing a 13% drop on the announcement day, reflecting concerns over Foot Locker's operational challenges [6]. - Despite the market's skepticism, Foot Locker's stock surged by 80% on the day of the announcement, indicating investor optimism about the potential benefits of the merger [8]. Group 4: Foot Locker's Challenges - Foot Locker has faced significant challenges, including a decline in sales and the need to adapt to the direct-to-consumer (DTC) model, which has impacted its traditional retail operations [7][8]. - The company has announced plans to close 400 underperforming stores by 2026, highlighting the urgency of its need for a strategic partner like DICK'S [8]. Group 5: Future Outlook - DICK'S leadership remains optimistic about the growth prospects following the acquisition, emphasizing their industry expertise and the potential for Foot Locker to regain its competitive edge [10].
DICK'S Sporting Q1 Earnings Coming Up: Is a Beat in the Cards?
ZACKS· 2025-05-21 18:26
Core Insights - DICK'S Sporting Goods Inc. is expected to report a year-over-year sales increase of 3.4% for the first quarter of fiscal 2025, with revenues estimated at $3.12 billion [1] - The consensus estimate for earnings per share (EPS) is $3.24, reflecting a decrease of 1.8% compared to the previous year [2] Financial Performance - The company anticipates a comparable sales increase of 4.5%, surpassing earlier predictions of 2.1% growth [4] - DICK'S Sporting delivered an earnings surprise of 3.7% in the last reported quarter, with an average earnings surprise of 8.6% over the trailing four quarters [2] Strategic Initiatives - The company's performance is likely bolstered by strategic efforts, brand strength, market share gains, and enhanced service levels through digital and store experiences [3][5] - DICK'S Sporting is focusing on an omnichannel athlete experience, differentiated product assortment, and deep engagement with the brand [6] Market Position - DICK'S Sporting has a forward 12-month price-to-earnings ratio of 12.50x, which is below the five-year high of 24.78x and the industry average of 16.71x [9] - The company's shares have increased by 9.2% over the past six months, contrasting with a 10% decline in the industry [9] Earnings Prediction - The company's earnings model indicates a positive outlook, with an Earnings ESP of +2.57% and a Zacks Rank of 3, suggesting a potential earnings beat [8]
Dick's Sporting Goods (DKS) Stock Sinks As Market Gains: Here's Why
ZACKS· 2025-05-19 23:01
Company Performance - Dick's Sporting Goods (DKS) closed at $182.83, down 0.65% from the previous trading session, underperforming the S&P 500's gain of 0.09% [1] - The stock has decreased by 0.82% over the past month, while the Retail-Wholesale sector gained 13.17% and the S&P 500 increased by 13.05% [1] Upcoming Earnings - The company's earnings report is scheduled for May 28, 2025, with an expected EPS of $3.21, reflecting a 2.73% decrease from the same quarter last year [2] - Revenue is forecasted to be $3.11 billion, indicating a 3.02% increase compared to the same quarter of the previous year [2] Full Year Estimates - For the full year, analysts expect earnings of $14.31 per share and revenue of $13.84 billion, representing increases of 1.85% and 2.97% respectively from the previous year [3] Analyst Projections - Recent shifts in analyst projections for Dick's Sporting Goods are important, as upward revisions indicate positive sentiment regarding the company's business operations and profit generation [4] Zacks Rank and Performance - The Zacks Rank system, which evaluates estimate changes, currently ranks Dick's Sporting Goods at 4 (Sell), with a consensus EPS projection that has decreased by 0.09% in the past 30 days [6] - Historically, 1 ranked stocks in the Zacks Rank system have delivered an average annual return of +25% since 1988 [6] Valuation Metrics - Dick's Sporting Goods has a Forward P/E ratio of 12.86, which is lower than the industry's Forward P/E of 13.79, indicating a valuation discount [7] - The company has a PEG ratio of 2.33, matching the average PEG ratio for the Retail - Miscellaneous industry [8] Industry Context - The Retail - Miscellaneous industry, part of the Retail-Wholesale sector, holds a Zacks Industry Rank of 43, placing it in the top 18% of over 250 industries [9] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9]
Retail ETFs Set to Gain on Dick's $2.4B Foot Locker Buyout
ZACKS· 2025-05-19 17:31
Dick’s Sporting Goods (DKS) , the nation’s leading sporting goods retailer, is set to acquire struggling shoe chain Foot Locker (FL) for $2.4 billion. The acquisition will be funded through a mix of existing cash and newly raised debt.The Dick’s–Foot Locker acquisition could mark a crucial shift in the global athletic retail landscape and could benefit retail ETFs like SPDR S&P Retail ETF (XRT) , VanEck Vectors Retail ETF (RTH) , Amplify Online Retail ETF (IBUY) and ProShares Online Retail ETF (ONLN) .Deal ...
What's Next For Foot Locker? Analyst Says Dick's Deal Is Timely
Benzinga· 2025-05-16 20:31
Telsey Advisory Group analyst Cristina Fernández reiterated the Market Perform rating on Foot Locker, Inc. FL on Friday, raising the price forecast from $20 to $24.Foot Locker shares rocketed premarket on Thursday after the company disclosed a definitive deal to be acquired by Dick’s Sporting Goods Inc DKS which values Foot Locker’s equity at around $2.4 billion and its enterprise at about $2.5 billion.As per the deal, Foot Locker shareholders will have the option to receive either $24 in cash or 0.1168 sha ...
Does Dick's $2.4B Foot Locker Buyout Justify a Buy Decision Today?
ZACKS· 2025-05-16 20:01
DICK’S Sporting Goods, Inc. (DKS) is acquiring another big athletic footwear retailer Foot Locker, Inc. (FL) . Will this impact Dick’s Sporting Goods’ focus and business alignment? Should you consider buying DKS stock now? Let’s find out – Dick’s-Foot Locker Deal Explained Dick’s Sporting Goods, recently, decided to acquire Foot Locker for almost $2.4 billion. In the buyout deal, Foot Locker shareholders may receive $24 in cash or 0.1168 shares of Dick’s common stock in place of each share held. The cash o ...
DKS Stock Slides More Than 14% Despite Upbeat Q1 Preliminary Results
ZACKS· 2025-05-16 17:40
Core Insights - DICK'S Sporting Goods, Inc. (DKS) anticipates a comparable sales increase of 4.5% for Q1 fiscal 2025, exceeding previous predictions of 2.1% growth [1] - The company expects earnings per share (EPS) of $3.24 and adjusted EPS of $3.37, which is higher than the $3.30 earned in the same quarter last year and the Zacks Consensus Estimate of $3.21 [1] - DKS is focusing on enhancing digital and store experiences to better serve athletes, with significant investments in digital transformation [1][2] Strategic Developments - DKS is benefiting from strong brand execution and market share, emphasizing an omnichannel experience to enhance athlete engagement [2] - The acquisition of Foot Locker (FL) for nearly $2.4 billion is a strategic milestone aimed at creating value for athletes and stakeholders [3][5] - The merger is expected to be accretive to DKS' EPS in the first fiscal year post-close and generate $100-$125 million in cost synergies through procurement efficiencies [5] Market Reaction - Following the merger announcement, DKS shares fell over 14%, reflecting investor concerns about the integration of FL's business [4] - Over the past three months, DKS shares have declined by 24.5%, compared to a 4.9% decline in the industry [4] Future Outlook - The combined entity aims to enhance its international presence, with Foot Locker operating as a standalone business within DKS' portfolio [6] - DKS is committed to improving the omnichannel athlete experience and diversifying its product offerings, leveraging platforms like GameChanger and Dick's Media Network for digital growth [6]