Dick's Sporting Goods Inc. (DKS) shares slipped Wednesday as investors positioned ahead of the retailer's quarterly report card. The company delivers its fiscal third-quarter 2025 earnings before the bell on Tuesday, November 25, and there's plenty to watch beyond the usual sales figures.

The story here involves consumer spending patterns, new store expansion, and how Dick's plans to squeeze value from its freshly acquired competitor, Foot Locker.

The Bull Case Holds

Bank of America Securities analyst Robert F. Ohmes isn't backing down, maintaining his Buy rating and $245 price target on the stock.

Here's where it gets interesting: Ohmes pointed to third-quarter spending data suggesting Dick's could beat his comparable sales forecast. Meanwhile, card-tracking data shows athletic spending has softened overall, which likely means Foot Locker is feeling more pain this quarter. That competitive dynamic matters, especially now that Dick's is buying the business.

The analyst does expect third-quarter earnings per share to take a hit from higher pre-opening costs as the company rolls out new store formats. Full-year margin expansion might also underwhelm, pressured by SG&A spending on digital infrastructure, store investments, and marketing.

But there are offsets. Ohmes believes revenue from retail media and GameChanger could help cushion any tariff-related cost increases later in the year. He's also looking for management to detail how they'll extract cost synergies from the Foot Locker deal.

Looking further out, the analyst projects combined operations will scale nicely, with pro forma earnings climbing as efficiencies kick in over the next two years.

The Numbers

Ohmes models third-quarter EPS at $2.69, just a penny below the Street consensus of $2.70. He sees potential for comparable sales to surprise on the upside versus his own forecast.

For the longer view, he's modeling pro forma EPS of $15.90 in fiscal 2027 and $17.20 in fiscal 2028. Those estimates assume Dick's pays all cash for Foot Locker and takes on roughly $2.1 billion in additional debt.

Dick's Sporting Goods shares were trading down 1.43% at $207.17 Wednesday.