Lancaster Investment Management initiated a new position in Dick's Sporting Goods (DKS -1.59%), 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
| Metric | Value |
|---|---|
| Revenue (TTM) | $13.77 billion |
| Net Income (TTM) | $1.17 billion |
| Dividend Yield | 2.1% |
| Price (as of market close 10/07/25) | $224.93 |
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.
