Wells Fargo cuts Dick’s Sporting Goods stock price target on footwear weakness

Truist downgraded Nike (NKE) to Hold from Buy, lowering its price target to $42 from $47, citing uncertainty around Nike's turnaround progress due to Dick's Sporting Goods' (DKS) guidance cut, which signals challenges in footwear trends. Nike had previously highlighted U.S. wholesale and Foot Locker growth, but Truist now believes Dick's underestimated cleanup needs and brand heat degradation.

Dick's Sporting Goods (DKS) stock fell 31% after reporting Q2 earnings below expectations and cutting full-year EPS guidance. Foot Locker's operating loss of $31.9M and weak performance were key issues. Jim Cramer remains bullish on DKS, while Wells Fargo cut its price target to $185. Institutional investors showed mixed activity.

Wall Street analysts issued upgrades, downgrades, and initiations for several companies. Upgrades include argenx (ARGX) to Buy at UBS, DT Midstream (DTM) to Outperform at Wolfe Research, and SolarEdge (SEDG) to Buy at UBS. Downgrades include Dick's Sporting Goods (DKS) to Hold at Truist, EPAM Systems (EPAM) to Neutral at JPMorgan, and Intuit (INTU) to Neutral at Bank of America. Initiations include Atlassian (TEAM) with Outperform at RBC, JFrog (FROG) with Outperform at RBC, and Lattice Semicond

DKS reported Q2 revenue of $5.59B, missing estimates, and lowered full-year guidance. Margins declined due to promotional pressures, while same-store sales rose 2.1%. The Foot Locker segment underperformed, and management expects promotional pressures to continue.

Dick's Sporting Goods Inc. cut its fiscal year net sales forecast to $21.9B-$22.2B, citing struggles at Foot Locker, which it acquired for $2.4B last year. The company attributed the decline to increased discounting and shifting consumer preferences. Shares fell 23%, while Nike Inc. dropped 4.2%.

Dick's Sporting Goods (DKS) reported Q2 revenue of $5.59B, with comparable sales up 4.9% for its core business. However, it cut full-year earnings guidance to $10.94-$11.94 (GAAP) and $11.00-$12.00 (adjusted), citing promotional market conditions and Foot Locker's 3.6% sales decline. Foot Locker, acquired in 2025, now expects a loss of $40M-$80M. Shares fell ~29% on the news.