Williams Trading reduced its price target on Dick’s Sporting Goods to $130 from $215 while maintaining a Hold rating, citing growing concerns over the performance of its Foot Locker division. The stock was last trading at $130.79, roughly in line with the new target.
The cut follows a broader reassessment of Dick’s Sporting Goods by several brokerages. DA Davidson lowered its target to $205 from $260, JPMorgan to $188 from $245, and Wells Fargo to $185 from $240. UBS, however, maintained a Buy rating with a $275 target, the highest among tracked firms.
Foot Locker’s second-quarter comparable sales fell 3.6%, undershooting the market consensus of a 0.9% increase. Williams Trading attributed the decline to an oversupply of basic lifestyle footwear from brands including Nike, Adidas, and New Balance. The firm noted that Dick’s management has struggled to secure attractive, fashion-forward athletic footwear, with only select running and training models available.
Analysts also criticized Foot Locker’s leadership structure. The president of Foot Locker North America was said to lack experience in multi-brand retail despite prior roles at Nike, while the president of Foot Locker International was described as having a background in grocery retail, which was deemed insufficient for the role. Williams Trading added that neither Dick’s Sporting Goods nor Foot Locker management appears to fully understand Foot Locker’s consumer base.
Dick’s Sporting Goods reported adjusted earnings per share of $3.53 for the quarter, below UBS’s $3.60 estimate and the $3.76 consensus. Guggenheim maintained a Neutral rating, citing disappointing operational results and elevated inventory levels that are expected to pressure margins through aggressive promotions.
The stock has declined 27.7% over the past week and 35.6% over the last six months, reflecting broader investor unease over Foot Locker’s competitive positioning and inventory management.
