Can DICK'S Sporting's Digital Strength & Brand Power Aid Growth?

DICK'S Sporting Goods, Inc. DKS continues to leverage its digital strategy as a key growth driver, making bold strides in digital transformation and strengthening position as a leading omnichannel player in the sports industry. The company’s GameChanger platform and Dick’s Media Network serve as pivotal pillars, fueling long-term digital revenue streams.

While GameChanger serves as a high-margin growth engine, Dick’s Media Network is a retail media platform that capitalizes on the growing scorecard loyalty program and customer data ecosystem. Through GameChanger, the company engages with athletes beyond a traditional shopping experience, further reinforcing dominance in sports. The GameChanger platform continues to drive high-margin growth through its subscription model, reaching 7.4 million unique users and 5.5 million monthly users in the second quarter of fiscal 2025, a 16% year-over-year increase.

DKS is making significant investments in technology to offer a seamless omnichannel experience to athletes and drive greater engagement across its digital platforms, including DICKS.com. Its access to top-tier products from national and emerging brands, paired with premium in-store and digital experiences, will continue to bolster demand and solid sell-through on launches.

DICK’S Sporting is benefiting from brand strength and continued market share growth. The company is experiencing broad-based growth across key categories such as footwear, apparel, team sports and golf, thanks to robust consumer demand and brand partnerships. DICK’S Sporting’s management noted that customers are shopping more frequently and spending more per trip, signaling healthy engagement across demographics. Management believes the company’s store concepts will meaningfully enhance brand differentiation and sustain profitable growth. All the aforesaid factors are likely to contribute to DKS’ sales and overall profitability.

DKS’ Price Performance, Valuation and Estimates

Shares of DICK'S Sporting have gained 2.2% year to date compared with the industry’s rise of 5.2%.

From a valuation standpoint, DKS trades at a forward price-to-earnings ratio of 15.3X compared with the industry’s average of 17.89X.

The Zacks Consensus Estimate for DKS’ fiscal 2025 and 2026 earnings implies year-over-year growth of 2.4% and 6.5%, respectively. The company’s EPS estimate for fiscal 2025 and 2026 has been stable in the past 30 days.

DICK'S Sporting currently carries a Zacks Rank #3 (Hold).

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The Zacks Consensus Estimate for Urban Outfitters’ current financial-year sales indicates growth of 5.5% from the year-ago figure. URBN delivered an average earnings surprise of 24.8% in the last four quarters.

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The Zacks Consensus Estimate for Genesco’s current fiscal-year EPS and sales indicates growth of 66% and 1.7%, respectively, from the year-ago period’s reported figures.

Allbirds, Inc. BIRD, a lifestyle brand, currently has a Zacks Rank of 2 (Buy). The company delivered a trailing four-quarter earnings surprise of 20.7%, on average.

The Zacks Consensus Estimate for BIRD’s current financial-year EPS indicates growth of 18.3% from the year-ago figure. 

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This article originally published on Zacks Investment Research (zacks.com).

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