DKS stock fell more than 30% in the previous session, marking its biggest single-day plunge on record.
- Truist, Telsey Advisory and KGI Securities all downgraded DICK’S, while Barclays sharply lowered its price target but kept an ‘Overweight’ rating.
- Telsey said weaker athletic apparel and footwear demand could “delay the turnaround” it had expected from Foot Locker by several quarters.
- Truist also downgraded Nike, saying DICK’S results add uncertainty around the athletic footwear giant’s turnaround.
DICK’S Sporting Goods (DKS) stock selloff extended into pre-market trading on Wednesday, with shares trading near a three-year low after a record one-day plunge and a wave of Wall Street downgrades, with Nike (NKE) caught in the crossfire.
The pressure followed a quarterly report that highlighted weaker demand at Foot Locker and prompted the retailer to cut parts of its full-year outlook.
In a note to investors cited by TheFly, Truist downgraded Dick’s Sporting to ‘Hold’ from ‘Buy’ and kept a $135 price target, while Telsey Advisory downgraded the shares to ‘Market Perform’ from ‘Outperform’ with a $145 price target, down from $255. KGI Securities downgraded DKS shares to ‘Neutral’ from ‘Outperform’ with a $135.10 price target.
DKS stock fell as much as 0.7% in pre-market trade and was among the top trending tickers on Stocktwits at the time of writing. It plunged over 30% in the previous session, clocking its biggest single-day drop on record.
The stock is now nearly 50% below its 2026 high of $244.38, putting it near levels last seen in late 2023. On Stocktwits, retail sentiment around DKS shares trended in ‘extremely bullish’ territory over the past day, accompanied by chatter at ‘extremely high’ levels.
Why Did Wall Street Downgrade DKS Stock?
Telsey pointed to slowing demand for athletic apparel and footwear, along with Foot Locker’s greater exposure to the softer lifestyle footwear market. The firm said those trends could “delay the turnaround” it had expected at DICK’S for at least several quarters. Telsey also noted that the slowdown appeared to accelerate as the second quarter progressed.
Telsey added that there’s unlikely to be a meaningful inflection at Foot Locker until brands introduce more product innovation or DICK’S makes significant changes to the retailer’s footwear assortment.
Barclays also cut its price target, though it kept an ‘Overweight’ rating. Analyst Adrienne Yih lowered the target to $150 from $280, citing the company’s second-quarter sales and earnings miss and negative comparable sales at Foot Locker.
Nike Gets Downgraded On DKS Foot Locker Weakness
The weakness is also putting pressure on other athletic and footwear stocks, with Nike among the names facing renewed scrutiny.
Truist downgraded the stock to ‘Hold’ from ‘Buy’ and lowered its price target to $42 from $47. The firm said DICK’S results “signal incremental murkiness” around Nike’s turnaround.
Truist pointed to DICK’S decision to lower its fiscal 2026 guidance because of deteriorating footwear trends and said it is now “incrementally cautious” on Nike.
The firm said it wants greater clarity on Nike’s cleanup efforts and the product pipeline expected in 2027 before becoming more constructive on the shares.
NKE stock edged 0.3% lower in pre-market trade. On Stocktwits, retail sentiment around the company trended in ‘neutral’ territory over the past day, with chatter rising to ‘high’ from ‘normal’ levels.
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