Dick's Sporting Goods: Truist Securities raises PT to $248, maintains Buy rating.

Dick's Sporting Goods: Truist Securities raises PT to $248, maintains Buy rating.

Dick's Sporting Goods (NYSE: DKS) has received a positive update from Truist Securities, which raised its price target to $248 and maintained a Buy rating for the stock. The analyst firm attributed the upward revision to the company's strong financial performance and strategic initiatives, including the pending acquisition of Foot Locker and investments in digital and in-store capabilities.

Financial Performance and Guidance

In its Q2 2025 earnings report, DICK'S Sporting Goods reported revenue of $3.65 billion, up 5% year-over-year (YoY), and a 33 basis point (bps) expansion in gross margin [1]. The company raised its full-year 2025 (FY25) guidance for sales and earnings per share (EPS), expecting consolidated sales to range between $13.75 billion and $13.95 billion, and EPS to be between $13.90 and $14.50 [1]. The company also expects a gross margin expansion and SG&A (Selling, General & Administrative) cost deleveraging due to strategic investments.

Foot Locker Acquisition

The pending acquisition of Foot Locker, set to close on September 8, is expected to enhance DICK'S Sporting Goods' global leadership in the sports retail industry by expanding its total addressable market and strengthening partnerships with leading sports brands [1]. The acquisition is anticipated to generate synergies of $100 million to $125 million [1].

Consumer Demand and Tariff Management

Despite the challenges posed by tariffs, DICK'S Sporting Goods has managed to navigate through the second quarter with a 5% YoY comp, driven by strategic price increases and effective inventory management [1]. The company has factored known tariffs into its guidance and has not seen a trade-down from best to better to good goods, indicating strong consumer demand [1].

Strategic Initiatives and Growth Drivers

DICK'S Sporting Goods is planning to open 16 House of Sport locations and 15 Fieldhouse locations in 2025, with 13 and 6 openings in Q3 respectively [1]. These investments are fueling powerful financial results, enhancing athlete engagement, and laying the foundation for sustainable long-term growth. The company's investment in AI, machine learning, and computer vision is also expected to be a long-term growth driver, enhancing productivity and empowering teammates to focus on athlete interaction [1].

Conclusion

Truist Securities' positive outlook on DICK'S Sporting Goods reflects the company's robust financial performance, strategic initiatives, and strong consumer demand. The pending acquisition of Foot Locker and the company's investments in digital and in-store capabilities are expected to drive long-term growth and profitability.

References

[1] https://www.ainvest.com/news/dick-q2-2026-contradictions-emerge-tariff-strategies-foot-locker-synergies-consumer-demand-2508/