Investing.com -- JPMorgan placed Dick’s Sporting Goods on Positive Catalyst Watch ahead of the retailer’s first-quarter 2026 earnings report, raising its comparable sales and earnings estimates above Wall Street consensus.

In a note from analyst Christopher Horvers, JPMorgan increased its core Dick’s Sporting Goods comparable sales estimate to 4.8% from 3.4%, while lifting its Foot Locker comp to positive 1% from a prior estimate of negative 1.4%.

The firm’s updated first-quarter earnings per share forecast of $3.24 compares to its prior estimate of $2.90 and consensus of $2.87.

The more significant revision came on operating profit, where JPMorgan now models $404 million for the total company versus the consensus of $367 million, with the bulk of the upside driven by Foot Locker, where the firm forecasts $40 million in operating profit against a consensus estimate of negative $10 million.

Horvers is "optimistic on the top and bottom lines," citing continued footwear momentum, healthy living and casualization trends, a stimulated consumer and clean inventory levels.

Looking further ahead, JPMorgan highlighted the upcoming World Cup as an additional tailwind, while noting that improved merchandising, higher heat product and Fast Break remodels all point to potentially stronger-than-expected results at Foot Locker going forward.

The firm noted that confidence in the category remains high following meetings with Dick’s management, including Chairman Ed Stack, with vendors described as "fully behind fixing" Foot Locker.

Dick’s Sporting Goods reports first-quarter results on May 27.