Guggenheim Securities maintained a neutral rating on Dick’s Sporting Goods (DKS) shares, while reducing its earnings estimates for the sporting goods retailer.
The brokerage cited weaker-than-expected fiscal second-quarter 2026 results, which showed adjusted earnings per share of $3.53, below the Wall Street consensus of $3.78. Net revenue totaled $5.59 billion, marginally short of the $5.65 billion forecast. Comparable store sales rose 4.9%, though this figure did little to offset broader industry headwinds.
Dick’s Sporting Goods stock has declined 35% in the week leading up to the report and is down 36% for the year, trading at $124.31, near its 52-week low of $124. The stock’s slide reflects deteriorating conditions in the athletic footwear sector, where Guggenheim previously flagged excess inventory as a structural challenge at the start of 2026.
The footwear segment, including competitors like Foot Locker, has seen margin compression, with Guggenheim revising adjusted EBIT downward by $200 million and net sales by the same amount. The broader industry is grappling with elevated inventory levels, prompting more aggressive promotional activity in traditional footwear and apparel categories.
InvestingPro data shows six analysts have lowered their earnings projections for Dick’s Sporting Goods in the near term. Wells Fargo also adjusted its price target to $185 from $240, though it maintained an overweight rating, citing the company’s positioning in a challenging market environment.
