Dick's Sporting Goods (DKS) is likely to post a modest re-acceleration in fiscal Q1 comps while momentum appears to be carrying into 2026 due to in-store experience improvements, collaboration with key brands and progress monetizing its media network, Morgan Stanley said.

The company's sporting goods segment is anticipated to post a Q1 operating margins decline as brand support and demand creation costs increase ahead of the FIFA World Cup, the investment firm said in a Monday research note.

Dick's Sporting Goods is scheduled to report Q1 results on May 27.

The World Cup is expected to affect seasonality in 2026. Morgan Stanley expects stronger H1 comps alongside operating margin declines tied to higher marketing and brand support spending. The firm said it expects 2026 EPS of $14.33.

Transportation costs present a modest near-term headwind but the Foot Locker segment continues to make good progress, according to the note.

Morgan Stanley reiterated its overweight rating on the stock and price target of $250 per share.

Shares of Dick's Sporting Goods were up 1% in Tuesday trading.

Price: 212.50, Change: +2.05, Percent Change: +0.97