Wolfe Research downgraded Dicks Sporting Goods Inc  (DKS) to "peer perform" on concerns the retailer will face accelerating margin pressure as consumers continue to migrate to online shopping.

Analysts Adrienne Yih and Doug Drummond wrote that negative mall traffic paired with a "persistent, challenging environment" has weighed on Dicks performance and margins. The sporting goods retail sector has performed worse than the industry overall, yet Dicks has not been able to carve out market share from peers who have exited.

Brick-and-mortar deleverage will likely worsen as sales move online and from a high fixed-cost channel to a high variable-cost channel. Yih and Drummond said they're skeptical of any further store openings beyond what's already planned.

Wolfe said Dicks faces increasing competition from Amazon.com (AMZN) , Hibbett Sports (HIBB) and Gander Mountain, given its recent "lifeline" from Camping World Holdings (CWH) .

Dicks stock traded up over 1.5% late-afternoon.

Amazon is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio . Want to be alerted before Cramer buys or sells AMZN? Learn more now.

Watch More with TheStreet:

If you liked this article you might like

If Sears Goes Under, These 3 Retailers Will Be Big Winners: UBS

If Sears Goes Under, These 3 Retailers Will Be Big Winners: UBS

What Intel's CEO Did With His Stock Should Have Sounded a Loud Warning

What Intel's CEO Did With His Stock Should Have Sounded a Loud Warning

New Upgrades Keep Boosting Stocks: Cramer's 'Mad Money' Recap (Wed 1/3/18)

New Upgrades Keep Boosting Stocks: Cramer's 'Mad Money' Recap (Wed 1/3/18)

Jim Cramer: Fresh Upgrades Will Keep Boosting Stocks

Jim Cramer: Fresh Upgrades Will Keep Boosting Stocks

Apple Worries Weigh on Tech While Retail Shines in Light Post-Christmas Session

Apple Worries Weigh on Tech While Retail Shines in Light Post-Christmas Session