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DKS
LONGINSIDER SELLDicks Sporting Goods Inc
Funds
3
Score
3.00
vs SPY
-1.6%
Stock return (since Q-end)
+14.8%
SPY return (since Q-end)
+16.3%
Current price
$227.57
News Summary
NeutralDKS delivered strong Q1 FY2026 results with 63% YoY sales growth driven by the Foot Locker acquisition (completed Sept 2025), though profitability margins compressed significantly due to $96.5M in integration costs. While management raised guidance on adjusted operating income and comparable sales outlooks, GAAP EPS guidance was lowered, and the stock fell 6% post-earnings as the market questions whether the Foot Locker turnaround can justify the acquisition's profitability drag.
Red flags
- •GAAP operating margin declined from 11.5% to 8.7%, and non-GAAP margin fell from 11.4% to 7.3% YoY
- •GAAP EPS guidance lowered to $13.27–$14.27 from $13.70–$14.70 despite revenue beat
- •Foot Locker segment showing only 0.6% comp sales growth, raising questions about acquisition value
- •$200M in one-time restructuring charges expected for FY2026 ($96.5M already incurred in Q1)
- •Stock declined 6% post-earnings on investor skepticism about Foot Locker integration profitability
Funds Buying (3)
| Fund | Manager | Shares Held | ∆ Shares | Position Value | QoQ | Status |
|---|---|---|---|---|---|---|
| Sachem Head Capital | Scott Ferguson | 1.6M | +385K | $318.3B | +32% | Existing |
| Maverick Capital | Lee Ainslie | 1.0M | +211K | $207.2B | +25% | Existing |
| Glenview Capital | Larry Robbins | 299K | +15K | $59.3B | +5% | Existing |
Shares Held and Position Value reflect total quarter-end holdings. ∆ Shares is the change from the prior quarter.
Insider Activity
| Name | Title | Type | Shares | Price | Value | Filed |
|---|---|---|---|---|---|---|
| Lodge-Jarrett Julie | EVP, Chf People & Purpose Ofcr | SELL | 3K | $221.13 | $0.55M | 2026-04-17 |
| Lodge-Jarrett Julie | EVP, Chf People & Purpose Ofcr | SELL | 2K | $227.26 | $0.37M | 2026-04-17 |
| STACK EDWARD W | Executive Chairman | SELL | 12K | $195.77 | $2.32M | 2026-03-31 |
| STACK EDWARD W | Executive Chairman | SELL | 73K | $197.01 | $14.41M | 2026-03-31 |
| STACK EDWARD W | Executive Chairman | SELL | 87K | $197.84 | $17.18M | 2026-03-31 |
| STACK EDWARD W | Executive Chairman | SELL | 23K | $198.65 | $4.51M | 2026-03-31 |
| STACK EDWARD W | Executive Chairman | SELL | 16K | $200.02 | $3.19M | 2026-03-31 |