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Dick's Sporting Goods Q1 Preview: All Eyes On Foot Locker Deal, Tariff Impact

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].