Dick’s Sporting Goods (DKS) Stock Hit With Downgrade as Foot Locker Bleeds Money

TLDR

• Dick’s Sporting Goods missed Q2 earnings expectations and cut its full-year EPS guidance to $11.00-$12.00, down from $13.50-$14.50.
• Telsey Advisory Group downgraded DKS to Market Perform and slashed its price target to $145 from $255.
• The newly acquired Foot Locker business posted a Q2 operating loss of $31.9 million, with pro forma comps down 3.6%.
• The core Dick’s banner performed well, with comparable sales up 4.9%, helped by World Cup product.
• An industry-wide promotional environment and inventory glut are expected to persist through at least Q4.

Dick’s Sporting Goods (DKS) is under pressure after a mixed Q2 earnings report sent analysts scrambling to revise their outlooks. The stock slipped roughly 1.2% following the results.

DICK’S Sporting Goods, Inc., DKS

Full-year non-GAAP EPS guidance was cut to $11.00-$12.00, well below the prior range of $13.50-$14.50. That reset was enough for Telsey Advisory Group to downgrade the stock to Market Perform from Outperform, slashing its price target from $255 to $145.

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