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Dick's to Close Underperforming Foot Locker Stores as Restructuring Accelerates

Management warned of near-term declines in Foot Locker sales as margins compress during a cleanup of inventory.

Overview

  • Dick's said it will shutter an unspecified number of Foot Locker locations, with specific closures to be detailed with fourth‑quarter results.
  • The company has initiated aggressive markdowns and asset impairments to clear unproductive inventory and prepare the business for a 2026 reset.
  • Guidance calls for Foot Locker comparable sales to decline in the mid‑ to high‑single digits this quarter, with margins down 10 to 15 percentage points.
  • Dick's expects $500 million to $750 million in pre‑tax restructuring and integration charges and will withhold Foot Locker quarterly comp reporting until the fourth quarter of fiscal 2026.
  • Leadership moves include appointing Matthew Barnes as president of Foot Locker International effective December 3, launching an 11‑store pilot to test new assortments and presentations, and raising the outlook for the core Dick's business.