Dick’s Sporting Goods has closed 113 stores in 2026 as the retailer restructures its newly acquired Foot Locker business, putting pressure on earnings and raising investor concerns about the cost of the turnaround strategy.
The U.S. sportswear retailer is reviewing its store network, removing underperforming locations, and absorbing hundreds of millions of dollars in restructuring charges after completing its $2.5 billion acquisition of Foot Locker in September 2025. The integration has created challenges as the company works to reshape its global retail presence.
Foot Locker Drives Most Of The Store Closures
According to TheStreet, Dick’s Sporting Goods’ second-quarter earnings release reported that the company closed 113 locations across its portfolio during fiscal 2026 through the second quarter. Three closures came from the main Dick’s Sporting Goods business, while 110 were part of the Foot Locker portfolio.
The retailer also opened new locations during the same period. Dick’s added four stores under its primary banner, while Foot Locker opened 27 locations. As of Aug. 1, 2026, the combined businesses operated 3,104 stores.
Most of the closures were concentrated within Foot Locker as Dick’s reviewed the acquired business and evaluated stores that did not fit its long-term plans.
The country’s biggest sports retailer doubled down on the sneaker market when it acquired the struggling Foot Locker chain about a year ago. That $2.4 billion deal has backfired on Dick’s Sporting Goods. https://t.co/Ew0Pe5MA0Z
— The Wall Street Journal (@WSJ) August 25, 2026
Restructuring Costs Add Pressure After Acquisition
According to the company, 67 Foot Locker closures during fiscal 2026 were connected to its review of what it calls “unproductive assets.” Dick’s also relocated or remodeled 41 stores as it worked to reposition the retail network.
The restructuring has generated significant costs. Dick’s Sporting Goods recorded $125.8 million in pre-tax charges during the 26 weeks ended Aug. 1, 2026. Total charges linked to the effort reached $515.8 million, and the company expects the full cost to reach as much as $750 million over time.
The retailer is making these changes while facing a difficult market for athletic footwear and apparel. Higher inventory levels across the industry have contributed to more promotional pricing as brands and retailers compete for shoppers.
Earnings Miss Sends Dick’s Shares Lower
Dick’s Sporting Goods reported second-quarter net sales of $5.59 billion, a 53.2% increase from the previous year. The growth was largely driven by the inclusion of Foot Locker following the acquisition.
The company’s comparable sales increased 4.9%, while Foot Locker comparable sales declined 3.6%. Adjusted earnings per diluted share reached $3.53, below analyst expectations of $3.76. Net income fell 17.3% during the quarter.
The weaker results led Dick’s to reduce its full-year forecast. The company now expects adjusted diluted earnings per share of $10.94 to $11.94 for fiscal 2026, compared with its previous estimate of $13.50 to $14.50. It also lowered its sales outlook to $21.9 billion to $22.2 billion.
Shares dropped more than 30% on Aug. 25, marking the company’s largest single-day stock decline on record, according to CNBC.
Dick’s Maintains Long-Term Plans For Its Retail Portfolio
Dick’s Sporting Goods said its core business will continue focusing on store growth, technology investments, supply-chain improvements, and upgrades to existing locations.
For Foot Locker, the company plans to continue investing through its Fast Break initiative while working on a longer-term recovery plan. Dick’s said some older footwear styles and apparel franchises are no longer connecting with consumers as they once did.
“While those dynamics are creating near-term challenges, our confidence in the Dick’s business and the long-term opportunity at Foot Locker remains unchanged,” Dick’s Sporting Goods CFO Navdeep Gupta said during the company’s earnings call.
The retailer expects a more promotional environment through the rest of fiscal 2026 and is continuing efforts to balance expansion in its core business with the restructuring of Foot Locker.
As of Aug. 1, 2026, Dick’s Sporting Goods operated 3,104 store locations across its Dick’s and Foot Locker businesses.
