Telsey Cuts DICK’S (DKS) Target, Highlights Progress in Foot Locker Recovery

DICK’S Sporting Goods, Inc. (NYSE:DKS) is included among the 14 High Growth Dividend Paying Stocks to Invest in Now.

On March 13, Telsey Advisory lowered its price recommendation on DICK’S Sporting Goods, Inc. (NYSE:DKS) to $240 from $245. It reiterated an Outperform rating on the shares. The firm pointed to better-than-expected Q4 results, noting that sales at both Dick’s and Foot Locker came in ahead of expectations. While FY26 EPS guidance was below expectations, the analyst highlighted a smaller sales decline at Foot Locker, progress in clearing inventory, and early results from the Fast Break initiative. These factors, in the firm’s view, support confidence in Dick’s ability to turn around the Foot Locker business over the next few years.

During the Q4 2025 earnings call, Executive Chairman Edward Stack said the company delivered another strong quarter. Comparable sales increased by more than 3%, and non-GAAP EPS grew at a double-digit rate. He also pointed to continued market share gains and said the long-term growth outlook remains solid. Stack described Foot Locker as a transformational opportunity. He noted that Fast Break stores posted very strong positive comparable sales in Q4, outperforming the core Dick’s business and showing clear improvement in gross margins.

He added that inventory cleanup at Foot Locker is largely complete, which he said sets the stage for an inflection point starting with the back-to-school season. For 2026, he expects comparable sales growth of 1% to 3% and operating income between $100 million and $150 million.

DICK’S Sporting Goods, Inc. (NYSE:DKS) operates as an omni-channel sporting goods retailer. The company also owns and runs Golf Galaxy, Public Lands, and Going Going Gone! stores, and sells products through its online platform and mobile apps.

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