Investing.com -- Telsey Advisory Group downgraded Dick's Sporting Goods (NYSE: DKS) to Market Perform from Outperform and slashed its price target to $145 from $255 in a note Wednesday, citing a tougher recovery path at recently acquired Foot Locker.

The downgrade follows DKS’s earnings report on Tuesday, which saw it miss expectations and cut its full-year outlook.

Analyst Cristina Fernández pointed to "the broader slowdown in demand for athletic apparel and footwear and Foot Locker's higher exposure to the softer footwear lifestyle market, which now delays the turnaround that we had expected in the business for at least a few quarters."

Telsey attributed the weakness to shifting consumer preferences toward dressier styles and a lack of newness.

Where fresh product exists, low profile, Mary Jane, adidas prints and patterns, Nike Mind and performance footwear, shoppers are responding, but not enough to offset softness in high-volume legacy lifestyle footwear, according to Fernández.

She added that the slowdown accelerated markedly as the second quarter progressed and is not confined to Nike, also hitting adidas and New Balance, while On and Hoka fare better.

The core Dick's business performed well, with a better-than-expected 4.9% comparable sales gain helped by World Cup product, and positive comps across apparel, footwear and hardlines.

Telsey cut its 2026 earnings estimate to $11.50 from $14.30 and expects the stock to stay range bound until Foot Locker returns to sustainable growth. Longer term, it still sees potential for share gains through improved marketing, store experience and assortment.