Dick’s Sporting Goods to Close Select Foot Locker Stores as It Moves to Protect 2026 Profitability

Dick’s Sporting Goods said it will shutter a number of Foot Locker stores as part of a broader restructuring following its acquisition of the sneaker retailer. Executive Chairman Ed Stack said the company is taking aggressive steps — from clearing out old inventory to impairing assets — to prevent Foot Locker from dragging down profitability in 2026. Dick’s declined to specify the number of closures or whether layoffs are expected.

Foot Locker’s comparable sales are forecast to decline in the mid- to high-single digits this quarter, with margins expected to fall 10 to 15 percentage points as the company works through markdowns and structural fixes.

Outside of the Foot Locker division, Dick’s delivered strong results. Comparable sales at Dick’s-branded stores rose 5.7 percent, beating expectations. The company raised its forecast for full-year comps to 3.5 to 4 percent, and now expects 14.25 to 14.55 dollars in earnings per share.

For the quarter ending November 1, Dick’s reported 2.78 dollars in adjusted EPS and 4.17 billion dollars in revenue, surpassing Wall Street projections. Total sales jumped 36 percent, boosted by 931 million dollars in added revenue from Foot Locker. Net income dropped to 75.2 million dollars, however, due to acquisition-related charges.

The Foot Locker acquisition gives Dick’s greater influence in the sneaker wholesale market, particularly with Nike, and expands its reach into urban and international markets. But it also brings risks: Foot Locker’s 2,400 stores have struggled for years, and its lower-income customer base has been more sensitive to a cooling economy.

Dick’s is working quickly to revitalize the chain. It is testing a revamped store model in 11 Foot Locker locations, cutting product assortment by more than 20 percent, redesigning merchandising and bringing back more apparel. Stack said early results are promising after simplifying and refocusing the brand’s signature “footwear wall.”

Dick’s remains one of the strongest performers in retail, but rehabilitating Foot Locker will be critical to sustaining momentum as the company moves into 2026.