Dick’s Sporting Goods got enough right in its quarter to signal stabilizing demand for athletic footwear. It is a possible bright spot for beleaguered Nike , a stock on borrowed time in the portfolio. For starters, Foot Locker saw positive comparable sales growth for the first time since its fiscal 2024 fourth quarter. The struggling sneaker chain, which Dick’s Sporting Goods acquired back in September, saw comparable sales rise 0.6%. The North America segment performed even better with comparable sales growth of 1.4%. Dick’s stores topped estimates with a same-store sales increase of 6%, driven by growth in both average tickets and transactions. Despite the positive steps, shares of Dick’s fell 5% on mixed guidance and an increased marketing spend around the upcoming World Cup. What happens at Dick’s can be a useful indicator of how Nike is doing. Last year, Dick’s said Nike was the biggest of its 1,500 vendors, accounting for 31% of consolidated merchandise purchases. According to its 2025 annual report, no other brand represents 10% or more. Dick’s operates over 3,100 store locations across its namesake and Foot Locker brands. Jeff Marks, director of portfolio analysis for the Club, took some solace in the Dick’s quarter as it relates to Nike. During our May Monthly Meeting on Wednesday, Marks said there is a perception that the numbers from Dick’s and Foot Locker may be a “good sign heading into back to school later this year.” The comp sales progress at Dick’s and Foot Locker is most important to us as far as Nike is concerned; less so are the factors weighing on Dick’s shares. That was on display as Nike stock jumped 2% to almost $46 per share on Wednesday following quarterly results from Dick’s — extending their recent win streak to five straight sessions. Nike, however, has been hammered year to date, still down over 28%, in the midst of what’s supposed to be the start of a major comeback. In fact, anticipation of a Nike resurgence under CEO Elliott Hill led us to initiate a position in September 2025. Shortly after becoming CEO nearly two years ago, Hill rolled out a plan to get Nike back on top. Hill’s so-called Win Now turnaround strategy includes sports-themed stores, senior management changes, and rebuilding relationships with wholesale partners like Dick’s Sporting Goods. Those partnerships took a backseat to a direct-to-consumer push under former CEO John Donahoe. That part of Hill’s plan has shown progress. In its fiscal 2026 third quarter , Nike reported North America wholesale revenue growth of 11%. “North America is leading our comeback and is well-positioned to sustain the momentum as we move forward,” CFO Matthew Friend said on the company’s earnings call at the end of March. NKE YTD mountain Nike YTD China, however, remains the company’s biggest challenge and key to the success of its overall recovery. While fiscal Q3 sales in the world’s second-largest economy were not as bad as initially expected, Nike forecasted…
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