Williams Trading Slashes DKS Price Target to $130 Amid Foot Locker Woes

Williams Trading has lowered its price target on Dick's Sporting Goods (DKS) to $130 from $215, citing challenges at Foot Locker business. The stock currently trades at $130.79, down 27.7% over the past week and 35.6% over six months.

The firm attributed the decline in Foot Locker sales to an overabundance of basic core lifestyle shoes from Nike (NKE), Adidas, New Balance, and other brands. According to Williams Trading, Dick's Sporting Goods management and Foot Locker leadership do not understand Foot Locker consumers as well as they understand Dick's Sporting Goods customers.

Williams Trading noted that the excess inventory reflects buying too much seemingly safe shoes and failing to identify appropriate newness. The firm also expressed concern about the lack of experience in leading multi-branded retail by the President of Foot Locker North America, who has years of experience at Nike.