DKS changes
Pick any two versions below to diff them.
- Price
- $144.35 → $147.65(+2.3%)
- Next earnings
- Nov 25, 2026 → Nov 24, 2026
- Next earnings is estimate
- Yes → No
- 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 removed: report, expected added: report on removed: about November removed: 25, added: 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.
- Checkpoints
- Nov removed: 25, 2026 (estimate): added: 24, 2026: 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.