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DICK'S Sporting Goods' 5% Comp Growth: What's Fueling It?

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Key Takeaways

  • {\"0\":\"DICK\'S Sporting Goods\' comps grew 5% YoY through higher average ticket size and more transactions.\",\"1\":\"An omnichannel strategy and new experiential stores are boosting customer engagement and sales.\",\"2\":\"Product innovation and vertical brands are driving strong demand and higher margins.\"}

DICK'S Sporting Goods, Inc. (DKS - Free Report) delivered a standout second quarter in fiscal 2025, with comparable store sales (comps) rising 5% year over year. This growth came on top of a 4.5% increase in the prior year and 2% in fiscal 2023, signaling sustained momentum. The comps improvement reflected a 4.1% increase in average ticket size and a 0.9% increase in transactions, showcasing both higher spending per visit and broader customer engagement.

The company’s omnichannel model remains a critical growth driver. Its e-commerce arm grew faster than the overall company in the second quarter, with the mobile app fueling a strong launch culture around footwear and apparel. At the same time, stores executed at a high level, delivering a differentiated in-store experience. Together, this integrated model helped push quarterly sales to $3.65 billion, up nearly 5% year over year, while gross margin expanded 33 basis points (bps) to 37.1% of sales.

DICK’S Sporting Goods is also benefiting from strategic real estate investments. In the fiscal second quarter, the company opened one new House of Sport and four Field House locations, with plans to add 13 and six more, respectively, in the fiscal third quarter. By year-end, it expects to operate about 35 House of Sport and 42 Field House stores, formats designed to deepen athlete engagement and drive higher spending per visit. These experiential concepts are proving successful not only in major markets but also in smaller ones, broadening growth potential.

Product innovation and brand partnerships are reinforcing demand. Footwear, apparel, team sports and golf all posted strong gains, with consumers responding to newness and performance-driven products. Vertical brands like DSG, CALIA and VRST are also gaining traction, delivering margins 700-900 bps higher than national labels. Looking ahead, management raised full-year comp guidance to 2%-3.5%, reflecting confidence that strategic execution can offset tariff pressures and macro uncertainty.

DKS’ Zacks Rank & Share Price Performance

Shares of this Zacks Rank #3 (Hold) company have gained 30.9% in the past three months compared with the industry and the broader Retail-Wholesale sector, which rose 16.9% and 11.2%, respectively. The stock also outperformed the S&P 500, which gained 12.4% in the same period.

DKS Stock's Past Three-Month Performance

Zacks Investment Research
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Is DKS a Value Play Stock?

DKS currently trades at a forward 12-month P/E ratio of 15.17X, which is higher than the industry average of 18.65X and higher than the sector average of 25.51X. This valuation positions the stock at a premium relative to both its sector and industry peers, suggesting that investors may be pricing in stronger growth prospects, brand strength or operational efficiency compared with competitors.

DKS P/E Ratio (Forward 12 Months)

Zacks Investment Research
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Stocks to Consider

Wolverine World Wide, Inc. (WWW - Free Report) designs, manufactures, sources, markets, licenses and distributes footwear, apparel and accessories. It currently sports a Zacks Rank of 1 (Strong Buy). WWW delivered a trailing four-quarter average earnings surprise of 39.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Wolverine’s current fiscal-year earnings and sales indicates growth of 46.2% and 6.5%, respectively, from the year-ago actuals.

Sally Beauty Holdings, Inc. (SBH - Free Report) operates as a specialty retailer and distributor of professional beauty supplies. It currently flaunts a Zacks Rank of 1. SBH delivered a trailing four-quarter average earnings surprise of 8.3%.

The Zacks Consensus Estimate for Sally Beauty’s current fiscal-year earnings indicates growth of 8.9% from the year-ago actuals.

Build-A-Bear Workshop, Inc. (BBW - Free Report) operates as a multi-channel retailer of plush animals and related products. It sports a Zacks Rank of 1 at present. BBW delivered a trailing four-quarter earnings surprise of 21.3%, on average.

The Zacks Consensus Estimate for Build-A-Bear Workshop’s current fiscal-year sales and earnings indicates growth of 7.4% and 6.9%, respectively, from the prior-year levels.

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