- Price
- $140.84
- Fair value
- $192.00
- Discount
- 26.6%
- Uncertainty
- High
- LSEG rating
- 2.36
- Moat
- Narrow
- Next earnings
- 2026-11-24
- Next earnings is estimate
- Yes
- Company name
- DICK'S Sporting Goods
- Sector
- Specialty retail
- About
- DICK'S Sporting Goods is the largest sporting goods retailer in the US. It sells sports equipment, apparel and footwear in its stores and online. The DICK'S Business includes the DICK'S Sporting Goods, House of Sport, Field House, Golf Galaxy, Going Going Gone! and Public Lands stores, and the GameChanger youth sports app. On September 8, 2025, DICK'S bought Foot Locker for about $2.5 billion, paid with about $0.2 billion of cash and 9.6 million DICK'S shares. The Foot Locker Business includes the Foot Locker, Kids Foot Locker, Champs Sports, WSS and atmos stores in the US, Europe and Asia Pacific. At August 1, 2026, the company had 3,104 stores. For fiscal 2026, it expects net sales of $21.9 billion to $22.2 billion, about two thirds from the DICK'S Business.
- Thesis
- DICK'S trades at a discount because the market doubts that Foot Locker can be fixed, and it fears that the losses there will use up profit from the strong DICK'S stores. On August 25, 2026, DICK'S cut its 2026 outlook. Foot Locker now expects a segment loss of $40 million to $80 million for 2026, against a profit of $110 million to $150 million in May. Its pro forma comparable sales fell 3.6% in Q2 2026, because the athletic footwear market became more promotional and new shoe launches sold below plan. The company also lowered profit guidance for the DICK'S Business, although its comparable sales grew 4.9%. The stock fell about 31% that day. For the gap to close, Foot Locker comparable sales must turn positive in 2027, its segment loss must shrink each quarter, the DICK'S Business must keep comparable sales growth near its 2.5% to 4.0% range with a segment margin near 11%, and the new debt must fund growth without a large drop in cash. The first test is the Q3 2026 report, expected on about November 24, 2026. The full-year report in March 2027 will give the 2027 outlook, the first full year with Foot Locker in comparable sales. If these results show Foot Locker near break-even, the gap can close over the next four to six quarters. The main risk is a long weak period for athletic footwear, which hits Foot Locker hardest.
- Risks
- The Foot Locker turnaround can take longer than planned. Foot Locker depends on shoe launches and older shoe styles from a few large brands. In Q2 2026, fewer launches came, and they sold below plan. DICK'S now expects a Foot Locker segment loss of $40 million to $80 million for 2026.
The athletic footwear and apparel market became more promotional in Q2 2026. DICK'S cut prices to stay competitive, and this lowers margins in both businesses. The 2026 segment profit outlook for the DICK'S Business fell to $1.54 billion to $1.60 billion, from $1.60 billion to $1.68 billion in May.
Spending on sports goods depends on household income. A weaker consumer can cut sales of higher-priced footwear, apparel and equipment, and leave more inventory to sell at lower prices. Inventory was $5.6 billion at August 1, 2026, with $2.0 billion at Foot Locker.
Most products are made outside the US, so new tariffs can raise costs. The refunds of IEEPA tariffs helped profit in 2026, but these refunds are one-time income and will not continue.
Debt is rising. DICK'S sold $1.0 billion of new notes in September 2026 and spends about $1.4 billion a year on stores and other capital projects.
- Balance sheet
- Cash: $914M
Debt: $1.9B
Net debt: $986M
Interest cover: 25×
Undrawn credit line: $2.0B
Debt due within 12 months: $0.0M
Last debt due: 2052
Ratings: Moody's Baa2, S&P BBB
At August 1, 2026, DICK'S had $914 million of cash and $1.9 billion of senior notes: $400 million at 4.00% due 2029, $750 million at 3.15% due 2032 and $750 million at 4.10% due 2052. No note is due before October 2029. Debt does not include operating lease liabilities of about $6.1 billion, because DICK'S leases almost all of its stores. The company had no borrowings under its $2.0 billion revolving credit facility or its $500 million commercial paper program, and it had $1.97 billion of borrowing capacity after letters of credit. Interest cover is operating income divided by interest expense for the first half of 2026. On September 25, 2026, after the balance sheet date, DICK'S sold $1.0 billion of new notes, $400 million due 2036 and $600 million due 2056, so debt is now about $2.9 billion. In the first half of 2026, it paid $225 million of dividends, bought back $141 million of shares and spent $743 million on capital projects. It had $3.0 billion left under its buyback programs at August 1, 2026.
As of 2026-08-01.
- Checkpoints
- Nov 24, 2026 (estimate): Q3 2026 results: Foot Locker losses and DICK'S comparable sales. Pending. Watch: A smaller Foot Locker loss, DICK'S Business comparable sales growth inside the 2.5% to 4.0% range and no new cut to the 2026 outlook pass; another outlook cut or a larger Foot Locker loss fails.
Mar 2027 (estimate): Full-year 2026 results and 2027 outlook. Pending. Watch: A 2027 outlook with positive Foot Locker comparable sales and a Foot Locker segment near break-even or better passes; an outlook with another year of Foot Locker losses fails.
May 2027 (estimate): Q1 2027 results: Foot Locker in comparable sales. Pending. Watch: Positive comparable sales for both businesses with stable gross margins pass; falling Foot Locker sales or deeper price cuts fail.
- Recent events
- 2026-09-25: DICK'S sold $1.0 billion of new senior notes: $400 million at 6.200% due 2036 and $600 million at 6.900% due 2056. It will use the money for general purposes, which can include debt repayment, share buybacks and acquisitions.
2026-09-21: DICK'S filed a new shelf registration for securities and published pro forma results for fiscal 2025, as if it had owned Foot Locker for the full year.
2026-08-25: DICK'S reported Q2 2026 results. Net sales were $5.59 billion, up 53% with Foot Locker. EPS was $3.50, and non-GAAP EPS was $3.53, against $4.38 a year earlier. DICK'S Business comparable sales grew 4.9%, and Foot Locker pro forma comparable sales fell 3.6%. Foot Locker had a segment loss of $32 million. DICK'S cut its 2026 outlook to non-GAAP EPS of $11.00 to $12.00, from $13.50 to $14.50. The stock fell about 31% that day.
2026-08-25: In Q2 2026, DICK'S received $59.0 million of refunds of IEEPA tariffs that it paid in the previous year. The US Supreme Court ruled on February 20, 2026, that these tariffs were not authorized.
2026-06-17: DICK'S completed an exchange of its unregistered 4.00% senior notes due 2029 for registered notes with the same terms.
2026-05-27: DICK'S reported Q1 2026 results. EPS was $3.54, and non-GAAP EPS was $2.90. DICK'S Business comparable sales grew 6.0%, and the Foot Locker Business returned to comparable sales growth and a profit. DICK'S raised the low end of its 2026 comparable sales outlook for both businesses.