Dick’s Sporting Goods (NYSE: DKS) announced it will close select Foot Locker stores and raised its full-year year outlook, in its third quarter earnings report on Tuesday.
While Dick’s has not disclosed how many locations it will shutter (Fast Company has reached out for confirmation), it is part of a larger restructuring effort, according to executive chairman Ed Stack who spoke with CNBC.
Dick’s acquired leading footwear and apparel retailer Foot Locker for $2.5 billion back in September, according to its latest earnings release. As of November 1, the company was operating 3,230 store locations across the combined Dick’s and Foot Locker businesses globally.
Shares in the Pittsburgh-based sports retailer were up about 1% at the time of this writing by late afternoon on Tuesday.
“[Dick’s] is taking strategic actions to address unproductive assets, including the optimization of inventory and the closure of underperforming stores,” Dick’s said in its earnings release. “The company believes these actions will lay the groundwork for the success of the Foot Locker Business starting in 2026.”
Once it optimizes inventory and shutters those underperforming stores, Dick’s said it expects Q4 2025 operating profit for Foot Locker to be just “slightly negative.”
Dick’s third quarter revenue came in at $4.17 billion beating expectations of $3.59 billion; and reported earnings per share (EPS) of $2.78 adjusted versus $2.71.
Dick’s is working to offset declining traffic, (Q3 foot traffic was down 2.6% year-over-year) by deepening digital engagement through its Game Changer app, (which had 7.4 million unique active users last quarter) expanding its House of Sport locations, and is betting on its recent Foot Locker acquisition to drive in-store growth, according to Placer.ai.