Dick's Sporting Goods Posts Q4 Beat, Guidance Disappoints As Analysts Highlight Market Share Gains

Shares of Dick’s Sporting Goods Inc DKS were under pressure in early trading on Wednesday, even after the company reported upbeat fourth-quarter results.

Here are some key analyst takeaways.

• Stifel analyst Jim Duffy maintained a Hold rating, while reducing the price target from $240 to $226.
• Telsey Advisory Group analyst Joseph Feldman reaffirmed an Outperform rating, while cutting the price target from $260 to $250.
• Goldman Sachs analyst Kate McShane reiterated a Buy rating, while reducing the price target from $280 to $242.
• Wedbush analyst Seth Basham maintained a Neutral rating and price target of $215.
• Guggenheim Securities analyst Steven Forbes reiterated a Neutral rating on the stock.

Check out other analyst stock ratings.

Stifel: Dick’s Sporting Goods' fourth-quarter net sales grew 6.4% to $3,894 million, beating Street expectations of $3,777 million, Duffy said in a note. The earnings beat was not as substantial, mainly due to below-the-line items, he added.

Management's earnings guidance for 2025 came in at a range of $13.80 to $14.40 per share, falling short of prevailing estimates, the analyst stated. "Increased inventory near-term supports potential comp upside in spring '25 but adds markdown risk should business slow," he further wrote.

Telsey Advisory Group: Dick’s Sporting Goods delivered another quarterly of "strong performance," with comps of 6.4% and earnings of $3.62 per share beating consensus of 3.1% and $3.52 per share, respectively, Feldman said. The company delivered a comp beat despite difficult comparisons and a relatively challenging consumer environment, he added.

In 2024, Dick’s Sporting Goods maintained its position as the largest US sporting goods retailer and grew its market share by around 50 basis points to about 9.0%, the analyst stated. The lower-than-expected earnings guidance for 2025 "mainly reflect investments in long-term strategic growth initiatives, weighing on near-term profitability," as the company is "accelerating growth of its new store concepts, House of Sport and Field House, which have been received well," he further wrote.

Goldman Sachs: Dick's Sporting Goods delivered a "solid" quarter, with healthy comps, margins and earnings, McShane said. The current momentum in the company's business, investments in digital and footwear as well as market share gains will support comps, she added.

Dick's Sporting Goods plans to continue growing its store concepts, including House of Sport, Field House, and Golf Galaxy Performance Center, the analyst stated. "We expect GameChanger and Dick's Media Network to remain important discussion points in FY25, which will serve as margin drivers and potentially result in multiple expansion over time," she further wrote.

Wedbush: Although Dick’s Sporting Goods' quarterly results "handily beat" consensus estimates, the 2025 comps and earnings guidance missed expectations, Basham said. The guidance came below consensus "even without including any impact from tariffs.”

Basham sees “more positives than negatives,” citing market share gains and strong gross margins supported by an assortment of premium products, strategic inventory investments, experiential retail concepts that are resonating, a strong eCommerce business, an impressive adjacent business in GameChanger and an emerging retail media network.

Guggenheim Securities: Dick's quarterly results "broadly exceeded our expectations," management’s 2025 outlook fell short, "with net capital expenditures needs ramping to over 7.0% of net sales," Forbes said.

The company’s "broad-based investment agenda" includes increasing square footage, technology investments and marketing expenses, the analyst stated. This indicates Dick Sporting Goods "is entering 2025 with an elevated breakeven comp profile.”

Price Action: Shares of Dick’s Sporting Goods had declined by 1.62% to $195.75 at the time of publication on Wednesday.

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