Overview
- The company reported second-quarter results that included Foot Locker and revealed the acquired chain posted a 3.6% pro forma comparable‑sales decline and a $31.9 million operating loss.
- Management lowered full‑year guidance to $21.9 billion–$22.2 billion in sales, $1.45 billion–$1.55 billion in operating income, and $11–$12 in adjusted EPS after the shortfall.
- Shares plunged roughly 30% after the update, a sell‑off that followed the earnings release and reflected investor concern about the pace of Foot Locker’s turnaround.
- Dick’s said it closed 113 stores across its portfolio in fiscal 2026 through the second quarter, with 110 of those closures at Foot Locker as part of an effort to right‑size underperforming locations.
- Executives said the problem stems from heavy vendor inventory and brand promotions that have depressed legacy sneaker sales; the company plans to work through inventory, remodel or relocate stores, and pursue $100 million–$125 million of targeted synergies while relying on Dick’s core banners, which still showed mid‑single‑digit comp growth.