Guggenheim Securities maintained its Neutral rating on Dick’s Sporting Goods (NYSE:DKS) stock, despite lowering estimates, as the retailer reported weaker-than-expected quarterly earnings and reduced its full-year guidance.
The sporting goods chain posted adjusted earnings of $3.53 per share for the quarter, missing the $3.78 per share consensus estimate. Revenue totaled $5.59 billion, slightly below the $5.65 billion forecast. Comparable sales rose 4.9%, but the company revised its adjusted EBIT for the Foot Locker segment downward by $200 million, citing softer demand in legacy footwear and apparel.
Dick’s Sporting Goods shares were trading at $124.31, near their 52-week low of $124, after plunging 35% over the past week and 36% year-to-date. Guggenheim had previously flagged footwear as an over-consumed discretionary category entering 2026, warning that a return to normalized end-market conditions would take time.
Wells Fargo reiterated its Overweight rating on the stock but cut its price target to $185 from $240, citing a deteriorating athletic footwear backdrop. Analyst Ike Boruchow highlighted the challenges posed by an increasingly aggressive promotional environment, driven by elevated inventory levels across the industry.
Six analysts have revised earnings estimates lower for the upcoming period, according to InvestingPro data. Management attributed the weaker outlook to the Foot Locker acquisition, which delivered a sales boost but also introduced integration challenges and margin pressures.
The company’s full-year guidance reduction and the Foot Locker segment’s underperformance have intensified investor concerns, compounding the stock’s steep decline amid broader sector headwinds.
