Are Category Trends Enough to Retain DICK'S Sporting's Comps Momentum?

DICK'S Sporting Goods, Inc. DKS delivered strong comps momentum, driven by robust category trends and disciplined execution, in third-quarter fiscal 2025. The DICK’S business posted a 5.7% comparable sales (comps) increase in the fiscal third quarter, driven by a 4.4% rise in average ticket and a 1.3% increase in transactions. This momentum was broad-based across footwear, apparel and hardlines, categories that continue to benefit from heightened focus on sport, active lifestyles and back-to-sport demand. 

Management highlighted that consumers remain deeply engaged in athletic and lifestyle categories, fueling healthy average ticket and transaction growth. The retailer’s access to premium and emerging brands, paired with high-performing vertical labels, is keeping its assortment fresh and relevant.

However, category strength alone isn’t the only engine sustaining momentum. DICK’S has been actively reinforcing the fundamentals behind its comp outperformance. Transformative real estate concepts, including House of Sport and Field House, are lifting engagement and productivity, while helping the company extend its reach into experience-led retail. The retailer opened 13 House of Sport locations in the fiscal third quarter, the largest quarterly rollout to date, alongside six new Field House stores, bringing the total stores to 35 and 42, respectively. 

These next-generation formats are also unlocking deeper partnerships with national brands, enhancing product flow and exclusivity. The expansion of trading cards and collectibles, a fast-growing category introduced through Fanatics, adds another high-energy growth pillar.

Complementing store growth, the company’s multibillion-dollar e-commerce business remains another structural driver, reinforcing DICK’S Sporting’s omnichannel strength. Digital gains are outpacing the overall business through enhancements such as app-exclusive launch reservations, app-led engagement, better personalization capabilities and increased youth sports engagement through GameChanger.

The company’s raised full-year guidance underscores confidence that these drivers can sustain performance even as the macro environment remains fluid. Management expects fiscal 2025 comps growth of 3.5–4% for the DICK’S business, up from the prior 2–3.5% growth, citing confidence in assortment quality and holiday execution. DKS now expects DICK’S business EPS of $14.25–$14.55, with operating margin around 11.1% at the midpoint, underscoring continued profitability even as the company invests heavily in digital capabilities, marketing and store growth.

While strong category momentum provides a favorable backdrop, it is DICK’S strategic execution, differentiated assortment and omnichannel strength that ultimately cement its comps trajectory. Combined, these factors suggest DKS can continue defending, and potentially expanding, its comps advantage heading into fiscal 2026.

DKS’ Zacks Rank & Share Price Performance

Shares of this Zacks Rank #3 (Hold) company have gained 18% in the past six months, outperforming the industry’s 15.7% growth, the broader Retail-Wholesale sector’s 5.1% increase and the S&P 500’s 16.3% growth.

DKS Stock's Past Six-Month Performance

Is DKS a Value Play Stock?

DKS shares are currently trading at a forward 12-month price-to-earnings (P/E) multiple of 14.43X, a discount compared with the industry’s average of 18.68X. At this level, DKS is offering compelling value to investors looking for exposure to the retail sector.

DKS P/E Ratio (Forward 12 Months)

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

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