Lancaster Loads Up On Dick's Sporting Goods (NYSE:DKS) With New $32 Million Stake

Lancaster Investment Management initiated a new position in Dick's Sporting Goods (NYSE:DKS), acquiring 141,987 shares valued at $31,552,000 as of September 30, 2025, according to an SEC filing dated October 8, 2025.

What happened

According to a filing with the Securities and Exchange Commission dated October 8, 2025, Lancaster Investment Management established a new position in DICK'S Sporting Goods, purchasing 141,987 shares. The estimated trade value, based on the average price during the quarter ended September 30, 2025, was $31.55 million. This addition brought the fund's total 13F reportable U.S. equity positions to eight at quarter-end.

What else to know

The new Dick's Sporting Goods stake represents 13.5% of Lancaster's reportable AUM as of September 30, 2025.

Lancaster's top holdings after the filing:

• Autoliv: $75.7 million (32.5% of AUM) as of September 30, 2025
• Liberty Global: $47.6 million (20.4% of AUM) as of September 30, 2025
• Flutter Entertainment: $40.5 million (17.4% of AUM) as of September 30, 2025
• Dick's Sporting Goods: $31.6 million (13.5% of AUM) as of September 30, 2025
• HDFC Bank: $15.8 million (6.8% of AUM) as of September 30, 2025

As of October 7, 2025, DKS shares were priced at $224.93, up 9.1% over one year but underperforming the S&P 500 by 9.8 percentage points.

Company Overview

Company Snapshot

Dick's Sporting Goods:

• Offers sporting goods equipment, apparel, footwear, and accessories through retail stores and e-commerce platforms; operates brands such as Golf Galaxy, Field & Stream, and Public Lands.
• Generates revenue through direct sales of merchandise in physical stores and online, complemented by specialty concept stores and a youth sports mobile application.
• Targets individual consumers, sports enthusiasts, and families primarily in the United States, with a focus on both in-store and digital shopping experiences.

Dick's Sporting Goods is a leading specialty retailer in the U.S. sporting goods market with a robust e-commerce presence. The company leverages a multi-brand strategy and specialty concepts to address diverse customer needs across sporting categories. Strong financial performance and a focus on omnichannel retailing underpin its competitive position in the sector.

Foolish take

Lancaster Investment Management just opened a hefty 14% position in Dick's Sporting Goods.

In 23 years as a publicly traded company, Dick's Sporting Goods has been a 99-bagger -- generating nine times higher total returns than the S&P 500 over the same time -- so this is a top-tier stock that Lancaster is buying.

However, in addition to the long-term success of the stock, the timing of the firm's purchase is also noteworthy to prospective investors.

Recently closing a deal to buy Foot Locker for $2.4 billion, Dick's Sporting Goods received glowing remarks from analysts at Goldman Sachs and Citi, with the latter calling it a sporting goods "category killer."

Lancaster seems to agree, not only buying Dick's Sporting Goods in the last quarter, but also liquidating its stakes in athletic-wear companies Nike and VF Corp.

Ultimately, buying stocks in the retail space can be brutal. However, Dick's Sporting Goods has grown sales and earnings by 7% and 23% annually over the last decade -- all while paying a rising dividend.

Trading at just 15 times forward earnings, Dick's Sporting Goods looks like a premium stock trading at a fair price -- and Lancaster seems to agree.

Glossary

Initiated a new position: When an investor buys shares of a company for the first time in their portfolio.
AUM (Assets Under Management): The total market value of investments managed by a fund or investment firm.
13F reportable: Refers to U.S. equity holdings that must be disclosed by institutional investment managers in quarterly SEC Form 13F filings.
Quarter-end: The last day of a fiscal quarter, often used as a reporting reference point.
Omnichannel retailing: A sales approach integrating physical stores, online platforms, and other channels for a seamless customer experience.
Dividend yield: A financial ratio showing how much a company pays in dividends relative to its share price, expressed as a percentage.
TTM: The 12-month period ending with the most recent quarterly report.
Specialty concept stores: Retail locations focused on specific product categories or customer segments within a larger brand.
Multi-brand strategy: A business approach where a company operates multiple brands to target different customer groups or market segments.
Filing: An official document submitted to a regulatory authority, such as the SEC, often containing financial or ownership information.

Citigroup is an advertising partner of Motley Fool Money. Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group and Nike. The Motley Fool recommends Flutter Entertainment Plc and HDFC Bank. The Motley Fool has a disclosure policy.