Telsey Advisory Group downgraded Dick’s Sporting Goods Inc. to Market Perform from Outperform on Wednesday, citing a broader slowdown in demand for athletic apparel and footwear and a delayed turnaround at Foot Locker.
The firm also reduced its price target on Dick’s shares to $145 from $255. The move follows the retailer’s earnings report on Tuesday, which missed market expectations and included a downward revision to its full-year guidance.
Analyst Cristina Fernández highlighted Foot Locker’s higher exposure to the softer footwear lifestyle market, noting that a turnaround in the business is now expected to be delayed by at least several quarters. Fernández added that while consumers are responding to fresh product offerings such as low-profile Mary Jane styles, adidas prints, Nike Mind, and performance footwear, the gains are insufficient to offset weakness in high-volume legacy lifestyle footwear.
Dick’s core business reported better-than-expected comparable sales growth of 4.9% in the quarter, driven by World Cup-related merchandise and positive comps across apparel, footwear, and hardlines. The retailer’s earnings estimate for 2026 was cut to $11.50 per share from $14.30 previously, reflecting reduced near-term growth expectations amid a challenging retail environment.
