Economy

Dick's Sporting Goods Announces Closure of Some Foot Locker Stores

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Nov 25, 2025

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Dick's Sporting Goods announced on Tuesday that it will close an unspecified number of Foot Locker stores as part of a restructuring plan following its acquisition of the sneaker retailer. The company stated the objective of the plan is to integrate the Foot Locker business without negatively affecting Dick's overall profitability in the future.

According to Dick’s Executive Chairman Ed Stack, the company is taking actions to "clean out the garage," which he said includes closing stores and implementing aggressive markdowns on old merchandise. Stack described these measures as a "one-time effort" intended to protect profits for fiscal year 2026. The company declined to state how many stores would close or if the restructuring would involve layoffs.

Following the announcement, shares of Dick’s Sporting Goods fell by approximately 3% in early trading, while shares of Nike rose 3%. For its fiscal third quarter, Dick’s reported that total revenue rose 36% to $4.17 billion, with the newly acquired Foot Locker business contributing almost $931 million. However, net income fell to $75.2 million, down from $227.8 million a year earlier.

The company projects that Foot Locker’s comparable sales will decline in the current quarter. In contrast, Dick's namesake stores saw comparable sales rise 5.7% during the third quarter, leading the company to raise its full-year forecast for its main banner. In a separate statement, Stack said his company's relationship with Nike is improving and moving in the right direction.

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• The acquisition has negatively impacted the company's immediate financial results. Despite total revenue rising 36% to $4.17 billion, the company’s net income fell sharply to $75.2 million, down from $227.8 million a year earlier. The newly acquired Foot Locker business contributed almost $931 million to revenue during this period of decreased profit.

• Investors have shown concern following the restructuring announcement. The market reacted to the news by sending shares of Dick’s Sporting Goods down by approximately 3% in early trading. This stock movement suggests a degree of investor apprehension about the plan and its implications for the company.

• The performance of the acquired Foot Locker stores is weak and projected to worsen. The company projects that Foot Locker’s comparable sales will decline in the current quarter. This underperformance contrasts with the positive 5.7% sales growth seen in Dick's own namesake stores, highlighting the challenges associated with the acquired brand.

How it may affect me

As a U.S. reader:

• Some Foot Locker stores will close, reducing local shopping options for athletic footwear. The company has not specified how many locations will be affected.

• Consumers may find "aggressive markdowns" on older merchandise at Foot Locker as the company aims to clear out existing inventory.

• The potential for layoffs at Foot Locker stores is unclear, as the company did not state if job cuts are part of its restructuring plan.

• Investors in Dick's Sporting Goods saw a short-term stock value decline, reflecting market uncertainty about the financial impact of the Foot Locker integration.

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