A Dick’s Sporting Goods store in Pleasant Hill, California, USA, on Monday, November 24, 2025.
David Paul Morris | Bloomberg | Getty Images
Dick’s Sporting Goods plans to close a number of Foot Locker stores after its acquisition of the sneaker company is completed, the company said Tuesday in announcing third-quarter results.
It’s unclear how many stores Dick’s plans to close, but the closures are part of a larger restructuring the company is undertaking so that Foot Locker won’t be a drag on its profits starting in fiscal 2026, Dick’s Executive Chairman Ed Stack told CNBC’s Courtney Reagan.
“We need to clean out the garage,” Stack said. “We have taken some pretty steep discounts to clear out old stock. We are affecting the assets of some stores.
The company declined to say how many stores would be affected or whether the restructuring would include layoffs.
As a result, Foot Locker’s comparable sales are expected to decline mid- to high-single digits in the current quarter, with margins expected to decline between 10 and 15 percentage points.
Beyond the Foot Locker store, Dick’s stores saw comparable sales increase 5.7% in the quarter, well above the 3.6% expected by analysts, according to StreetAccount.
For its namesake banner, the company now expects a comparable sales increase of between 3.5% and 4% (previously the range was 2% to 3.5%). According to StreetAccount, this is above expectations for growth of 3.6%.
According to LSEG, Dick’s also now expects full-year earnings per share to be between $14.25 and $14.55, down from previous guidance of $13.90 to $14.50 and in line with expectations of $14.44 per share.
Here’s how the major sporting goods retailer performed compared to Wall Street’s expectations, based on an analyst survey by LSEG:
- Earnings per share: $2.78 adjusted vs. $2.71 expected
- Revenue: $4.17 billion versus expected $3.59 billion
The company’s reported net income for the three-month period ended Nov. 1 was $75.2 million, or 86 cents per share, compared with $227.8 million, or $2.75 per share, a year earlier. Excluding one-time items, including the impact of the Foot Locker acquisition, Dick’s had earnings per share of $2.78.
Dick’s has been a standout throughout the retail industry and now faces the challenge of turning around Foot Locker’s business in a way that doesn’t compromise its normally pristine results.
Dick’s $2.4 billion acquisition of Foot Locker gave the company a huge competitive advantage in the wholesale sneaker market, especially for Nike Products and access to an international and urban consumer.
It also accelerates the company’s growth. Thanks to Foot Locker’s sales, which totaled nearly $931 million in the quarter, Dick’s sales rose an incredible 36% to $4.17 billion from $3.06 billion a year ago.
However, it also came with some risks. Foot Locker has around 2,400 stores worldwide and has been underperforming for years. Its consumers tend to prefer lower incomes than Dick’s and have not fared as well in a weakening economy.
Under CEO Mary Dillon, Foot Locker had worked to innovate its stores and change the way it markets sneakers. Since the acquisition, the company has begun testing changes at 11 stores in North America to see if the fixes increase sales, including product cuts of over 20%, the return of apparel and a change to Foot Locker’s “shoe wall.”
“If you ever walked into a Foot Locker store and looked at the shoe wall… it would be nothing more than an expletive,” Stack said. “It was just a whole bunch of shoes thrown against the wall, and we stripped it all down, remarketed it and focused on shoes that we really wanted to sell. … It’s early days, but we’re pretty excited about what we’ve done.”
—Courtney Reagan of CNBC contributed to this report.
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