Dick’s Sporting Goods reported significant restructuring efforts tied to its September 2025 acquisition of Foot Locker for $2.5 billion. Through the second quarter of fiscal 2026, the company closed 113 store locations across its portfolio, with 110 of those closures occurring within the Foot Locker business. The company also opened stores during the period, including four within its Dick’s Sporting Goods business and 27 within Foot Locker, bringing total locations to 3,104 as of August 1, 2026.
The store closures reflected the company’s effort to optimize its portfolio following the acquisition. Of the 110 Foot Locker closures, 67 were identified through a review of unproductive assets, while an additional 41 locations were relocated or remodeled. The restructuring has generated substantial costs, with the company incurring $125.8 million in pre-tax charges during the 26 weeks ended August 1, 2026, bringing cumulative charges to $515.8 million. Total charges are expected to reach up to $750 million, with approximately $200 million anticipated in fiscal 2026 and the remainder over the medium term.
Second-quarter results highlighted mounting challenges. Consolidated net sales increased 53.2% year over year to $5.59 billion, primarily due to the Foot Locker inclusion, while net income declined 17.3%. Comparable sales within the Dick’s business climbed 4.9%, but Foot Locker comparable sales fell 3.6%. Adjusted earnings per diluted share came in at $3.53, below the $3.76 expected. The company attributed Foot Locker’s struggles to certain legacy product lines losing consumer appeal and elevated industry inventory levels creating a more promotional retail environment.
The weaker-than-expected performance prompted management to reduce full-year guidance. Adjusted diluted earnings per share expectations declined to $10.94 to $11.94 from the prior range of $13.50 to $14.50, while full-year net sales guidance lowered to $21.9 billion to $22.2 billion compared with the previous range of $22.1 billion to $22.4 billion. Investors responded sharply, with shares falling more than 30% on August 25, marking the company’s worst single-day stock decline on record. Management stated confidence in the Dick’s business and the long-term Foot Locker opportunity remained unchanged despite near-term challenges.
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