On Tuesday, Dick's Sporting Goods (NYSE:DKS) shares saw a slight adjustment in its price target. TD (TSX:TD) Cowen has lowered the target to $224 from the previous $226 while maintaining a Buy rating on the company's shares. The firm believes that the lower end of the company's full-year earnings per share (EPS) guidance is conservative.
The analyst highlighted the significance of brands like Nike (NYSE:NKE), HOKA, ON, and Adidas (OTC:ADDYY) in Dick's Sporting Goods' product allocations and their role in introducing new products to the market. These brands are becoming increasingly important for the retailer.
Dick's Sporting Goods has been experiencing growth in categories beyond Footwear, which represents 26% of sales. Footwear has been the most significant contributor to same-store sales (SSS), delivering a 2% increase. In fiscal year 23, Footwear accounted for 68% of the total company's incremental growth.
The company's vendors and customers have reportedly responded well to the retail experience offered at Dick's Sporting Goods stores. This positive reception is based on survey work cited by the analyst.
The adjustment in the price target reflects a nuanced view of the company's growth prospects, considering the contributions from various product categories and the overall store experience. Dick's Sporting Goods continues to maintain its Buy rating according to TD Cowen, suggesting confidence in the company's future performance.
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