A Dick’s Sporting Items retailer in Nice Hill, California, US, on Monday, Nov. 24, 2025.
David Paul Morris | Bloomberg | Getty Pictures
Dick’s Sporting Items is planning to shut a slew of Foot Locker shops now that its acquisition of the sneaker firm is full, the corporate stated Tuesday when asserting fiscal third-quarter earnings.
It is unclear what number of shops Dick’s plans to shutter, however the closures are half of a bigger restructuring it is implementing so Foot Locker is not a drag on its income come fiscal 2026, Dick’s Govt Chairman Ed Stack instructed CNBC’s Courtney Reagan.
“We have to clear out the storage,” stated Stack. “We have taken fairly aggressive markdowns to scrub out outdated merchandise. We’re impairing some retailer belongings. We’ll shut some shops … all the things we’re doing is there to guard 2026 and simply sort of do that one time.”
The corporate declined to say what number of shops can be impacted and whether or not the restructuring will embrace layoffs.
Consequently, Foot Locker’s comparable gross sales are anticipated to be down within the mid- to high-single digits within the present quarter with margins projected to fall between 10 and 15 proportion factors.
Shares of Dick’s Sporting Items fell roughly 3% in early buying and selling Tuesday.
Past the Foot Locker enterprise, Dick’s shops noticed comparable gross sales rise 5.7% through the quarter, properly forward of the three.6% analysts had anticipated, based on StreetAccount.
For its namesake banner, the corporate is now anticipating comparable gross sales to rise between 3.5% and 4%, up from its prior vary of two% to three.5%. That is forward of expectations for 3.6% development, based on StreetAccount.
Dick’s can be now anticipating full-year earnings per share to be between $14.25 and $14.55, up from a earlier forecast of $13.90 to $14.50 and consistent with expectations of $14.44 per share, based on LSEG.
This is how the big-box sporting items retailer carried out in contrast with what Wall Avenue was anticipating, based mostly on a survey of analysts by LSEG:
- Earnings per share: $2.78 adjusted vs. $2.71 anticipated
- Income: $4.17 billion vs. $3.59 billion anticipated
The corporate’s reported web revenue for the three-month interval that ended Nov. 1 was $75.2 million, or 86 cents per share, in contrast with $227.8 million, or $2.75 per share, a 12 months earlier. Excluding one-time objects together with the influence of the Foot Locker acquisition, Dick’s posted earnings per share of $2.78.
Dick’s has been a standout performer throughout the retail trade and now has the problem of fixing Foot Locker’s enterprise so it does not weigh on its sometimes pristine outcomes.
Dick’s $2.4 billion acquisition of Foot Locker gave it a large aggressive edge within the wholesale sneaker market, most significantly for Nike merchandise, and entry to each a world and concrete client.
It is also supercharging the corporate’s development. Due to Foot Locker’s income, nearly $931 million through the quarter, Dick’s gross sales rose a staggering 36% to $4.17 billion from $3.06 billion a 12 months earlier.
Nevertheless, it additionally acquired some dangers. Foot Locker has about 2,400 shops globally and has underperformed for years. Its client tends to skew decrease revenue than Dick’s’ and hasn’t held up as properly in a softening financial system.
Below CEO Mary Dillon, Foot Locker had labored to refresh its shops and alter the best way it merchandises sneakers. Since its acquisition, it started testing modifications in 11 shops in North America to see if the fixes enhance gross sales, together with reducing merchandise by greater than 20%, bringing again attire and altering Foot Locker’s “footwear wall.”
“Should you’d walked right into a Foot Locker retailer earlier than and also you appeared on the footwear wall … it was nothing however a run on sentence,” stated Stack. “It was only a complete bunch of sneakers thrown up on the wall, and we took all of that down, we re-merchandised it, centered on sneakers we actually wished to promote. … It is early on, however we’re fairly keen about what we have performed.”
— CNBC’s Courtney Reagan contributed to this report.
