A Dick’s Sporting Items retailer in Nice Hill, California, US, on Monday, Nov. 24, 2025.
David Paul Morris | Bloomberg | Getty Photos
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 saying 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 earnings come fiscal 2026, Dick’s Govt Chairman Ed Stack informed 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 “We have taken fairly aggressive markdowns to scrub out outdated merchandise.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 … every part 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 embody layoffs.
Because of this, 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 share factors.
Past the Foot Locker enterprise, Dick’s shops noticed comparable gross sales rise 5.7% throughout the quarter, nicely forward of the three.6% analysts had anticipated, in response to 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% progress, in response to 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, in response to LSEG.
Here is how the big-box sporting items retailer carried out in contrast with what Wall Avenue was anticipating, primarily based 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 earnings 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 yr earlier. Excluding one-time gadgets together with the impression 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 would 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 global and concrete client.
It is also supercharging the corporate’s progress. Because of Foot Locker’s income, virtually $931 million throughout the quarter, Dick’s gross sales rose a staggering 36% to $4.17 billion from $3.06 billion a yr earlier.
Nonetheless, it additionally acquired some dangers. Foot Locker has about 2,400 shops globally and has underperformed for years. Its client tends to skew decrease earnings than Dick’s’ and hasn’t held up as nicely in a softening economic system.
Beneath CEO Mary Dillon, Foot Locker had labored to refresh its shops and alter the way in which 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 chopping merchandise by greater than 20%, bringing again attire and altering Foot Locker’s “footwear wall.”
“For those who’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 needed to promote. … It is early on, however we’re fairly obsessed with what we have carried out.”
— CNBC’s Courtney Reagan contributed to this report.
