Dick's Sporting Goods (DKS) Promotional activity at Foot Locker and observations from latest Fast Break location visit

Equity Research 27 July 2026 | 5:00AM EDT

Dick’s Sporting Goods (DKS) Promotional activity at Foot Locker and observations from latest Fast Break location visit

DKS 12m Price Target: $271.00 Price: $206.04 Upside: 31.5% BUY CL Kate McShane, CFA In this note, we provide an update on Foot Locker promotional | Goldman Sachs & Co. LLC activity through in-store and online channel checks. Specifically, we Emily Ghosh provide insights from our legacy and Fast Break format Foot Locker | Goldman Sachs & Co. LLC visits on 7/21/26 in NYC (East and West 14th Street). We also highlight previous updates from our 6/5 check here. In the legacy Grace Chee | Goldman Sachs & Co. LLC location, we noticed the new Salomon assortment (AS, covered by Brooke Roach), a refreshed Adidas assortment, and early indications of Back to School apparel and merchandise starting to come in. We Key Data _____________________________________ Market cap: $18.2bn also found that the breadth and depth of promotions have Enterprise value: $18.6bn 3m ADTV: $260.6mn decreased compared to last month’s visit, and remains lower y/y. In United States the Fast Break location, we continue to observe refreshed shoe Americas Retail Specialty Hardlines, Supermarkets and Discount Stores offerings, with brands repositioned across wall displays in a different M&A Rank: 3

order from previous checks. GS Forecast __________________________________ 1/26 1/27E 1/28E 1/29E

As mentioned in our recent conversation with IR, a true change in Revenue ($ mn) EBITDA ($ mn) 17,215.1 2,004.9 22,385.5 2,468.6 23,441.5 2,891.6 24,659.1 3,352.7 Foot Locker’s inventory buys will start rolling through in 3Q26. Per EBIT ($ mn) 1,516.2 1,818.9 2,212.4 2,638.1 EPS ($) management, there has not been much of an assortment change in P/E (X) the broader business today, which is based on the timing of EV/EBITDA (X) 8.9 7.6 6.4 5.4 FCF yield (%) 2.3 6.1 4.5 6.6 inventory buys. The company has been working with brand partners Dividend yield (%) 2.3 2.4 2.6 2.8

to fill in holes over the past couple of months, and the earliest they Net debt/EBITDA (X) 0.3 0.2 0.2 0.1

can influence the inventory is back-to-school. For Dick’s customers, 4/26 7/26E 10/26E 1/27E

the vast majority of back-to-school is in 3Q (in August). Dick’s EPS ($)

previously explained it plans to have ~250 Fast Break stores by GS Factor Profile ______________________________ Growth back-to-school and will also have updated the assortment across the remainder of the Foot Locker fleet by this time, and the Financial Returns

company plans to support these efforts with a brand relaunch. As Multiple

the year progresses, we will continue to monitor the Fast Break and Integrated legacy stores for any promotional or format changes. Percentile 20th 40th 60th 80th 100th We continue to believe that an improved assortment carrying more relevant styles, higher brand heat, and an improved shopping DKS relative to Americas Coverage DKS relative to Americas Retail Specialty Hardlines, Supermarkets and Discou experience will make Foot Locker meaningfully more competitive. Foot Locker’s positive 1Q comp (Foot Locker US banner up 6.4%) Source: Company data, Goldman Sachs Research estimates. See disclosures for details. and solid early results from the Fast Break initiative (+DD) before

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Goldman Sachs Dick’s Sporting Goods (DKS)

Dick’s Sporting Goods (DKS) Income Statement ($ mn) ___________________________________ 1/26 1/27E 1/28E 1/29E BUY CL Rating since Sep 23, 2025 Total revenue 17,215.1 22,385.5 23,441.5 24,659.1 Cost of goods sold (11,329.9) (14,893.0) (15,326.0) (15,849.7) SG&A (4,300.0) (5,582.9) (5,813.2) (6,081.5) Ratios & Valuation…