Goldman Sachs lowers price target on Dick's Sporting Goods amid store closures and weak earnings
Dick’s Sporting Goods (DKS) experienced a sharp decline in its stock, falling nearly 30% after missing second-quarter earnings expectations. The drop was driven by weaker-than-expected performance from Foot Locker, the shoe retailer it acquired last year, as well as increased promotional activity across the athletic footwear market that hurt margins. Goldman Sachs (GS) responded to these developments by lowering its price target for DKS stock from $271 to $170 while maintaining a 'Buy' rating. The firm cited weak comparable sales at Foot Locker and aggressive discounting as key factors behind the selloff, though it noted strong performance in Dick’s core business and improved guidance could support long-term optimism. The company also announced the closure of 113 stores during fiscal 2026—mostly tied to its integration with Foot Locker. Executive Chairman Ed Stack attributed these challenges to inventory overstocking due to declining demand for older product styles, which led brands across the industry to deepen discounts.
