Readthrough for Dick’s Sporting from Nike’s Q4 is better, says DA Davidson

DA Davidson keeps a Buy rating and $265 price target on Dick’s Sporting (DKS), stating that while the Q4 results and below-consensus guidance from Nike (NKE) will likely lead to a sell off in shares in the near term, the read-through for its key wholesale partners is better than what the headline results seem to indicate. Nike’s North American wholesale business was up 6%, which was an acceleration from 5% last quarter and marked a big beat vs. a down 1% forecast, the analyst tells investors in a research note. Wholesale growth was significantly better than Nike’s direct-to-consumer business, which fell 9% and was a miss vs. the estimate of up 4%, the firm added.