Dick's earnings preview: Foot Locker momentum is the key

Dick's Sporting Goods is set to release its second-quarter earnings on Tuesday, providing crucial insights into the performance of the $2.4 billion Foot Locker acquisition. Analysts predict earnings per share of $3.78 and revenue of $5.65 billion, marking a notable improvement from the first quarter's figures of $2.90 per share and $5.17 billion in revenue.

This 54.79% year-over-year revenue growth is attributed to the successful completion of the Foot Locker acquisition in September 2025. The stock is currently rated as a buy with an average price target of $251.05, implying a 37% upside from its current price of $183.23. While EPS estimates have slightly increased over the past 60 days, they have slightly decreased in the past week.

The stock trades at a valuation of 18.1 times trailing earnings and 12.7 times forward estimates, suggesting expectations of accelerating profit growth. Back-to-school season will serve as a critical test for Dick's to determine if it can revitalize Foot Locker's struggling business. Analysts, such as DA Davidson's Michael Baker, believe that the retailer will closely monitor this period as a key milestone to gauge early success.

The GameChanger platform, utilized by Dick's, has seen a significant increase in product count for men's and women's merchandise, with a 13% rise since May. Comparable-store sales trends will be closely monitored, particularly at both Dick's and Foot Locker locations. The success of the GameChanger platform, which generates $150 million annually and has a 40% compound annual growth rate, is seen as an underappreciated asset, potentially contributing to 30-50 basis points to comparable sales and 10-15 basis points to gross margin over the next five years.