Dick’s Sporting Goods announced on November 25, 2025 that it will close a number of Foot Locker stores as part of a post‑acquisition restructuring aimed at protecting 2026 profits.
The company completed its acquisition of Foot Locker on September 8, 2025, for $2.4 billion, a move intended to make Dick’s a global leader in sports retail. Foot Locker’s underperformance and integration costs have prompted the restructuring, which includes store closures and inventory cleanup.
While the exact number of stores to be closed has not been disclosed, Dick’s warned of up to $750 million in restructuring charges, covering store closures, inventory write‑downs, and other integration costs.
Dick’s Q3 2025 results showed net sales of $4.17 billion, missing analyst expectations of $4.43 billion, and an adjusted EPS of $2.07, below the consensus of $2.71. Core DICK’S comparable sales rose 5.7%, and the company raised its full‑year EPS guidance to $14.25–$14.55.
CEO Ed Stack said the company is “cleaning out the garage” and that the actions are designed to protect 2026 profits. He highlighted aggressive inventory markdowns and the impairment of some store assets as part of the plan.
Investors reacted negatively, citing the earnings miss and the potential $500–$750 million restructuring charges. Foot Locker’s weak outlook for gross margin and sales also contributed to the cautious sentiment.
The store closures and inventory cleanup are intended to improve Foot Locker’s profitability and reduce operating costs. While the restructuring will generate short‑term charges, the long‑term benefit depends on Foot Locker’s ability to return to growth, which would complement the strong performance of the core DICK’S business.
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