Dick's Sporting Goods Raises Outlook, But Foot Locker's Near-Zero Profits Stir Worries

Core Business Performance - Dick's Sporting Goods reported third-quarter sales of $4.168 billion, representing a 36.3% year-over-year increase, surpassing the expected $3.546 billion [1] - The company raised its 2025 GAAP EPS forecast to $14.25–$14.55 from $13.90–$14.50 and lifted its sales outlook to $13.95 billion–$14 billion from $13.75 billion–$13.95 billion [2] Analyst Insights - Telsey Advisory analyst Cristina Fernández maintained an Outperform rating but lowered the price forecast from $255 to $245, citing near-term noise from the Foot Locker acquisition [3] - Fernández noted that the core Dick's business is well-positioned with diversified merchandising and strong full-price selling, benefiting from an omnichannel model [4] - Guggenheim analyst Steven Forbes reiterated a Neutral rating, highlighting concerns over Foot Locker's profitability and the impact of issuing 9.6 million new shares [5] Future Projections - Fernández adjusted her 2025 EPS estimate to $12.95, down from $14.50, while modeling a 4% comparable sales growth for 2025, an increase from her previous estimate of 3.6% [4] - For 2026, EPS is now estimated at $15, reduced from $15.50 [5] - Analysts expect solid fourth-quarter 2025 operating performance for Dick's, with management indicating that second-half 2025 core segment gross margin gains should exceed first-half improvements [7] Stock Performance - Following the positive earnings report, DKS shares rose by 2.19% to $211.26 [8]