Dick's Sporting Goods Closes 113 Stores Amid Restructuring and Earnings Miss
Dick's Sporting Goods (DKS) has closed 113 stores in fiscal 2026 as part of a restructuring effort following its acquisition of Foot Locker. The closures are primarily within the Foot Locker segment, with 110 locations shuttered out of the total 113 store reductions. Despite opening new locations and reporting higher consolidated sales driven by the inclusion of Foot Locker's results, the company reported weaker-than-expected earnings for Q2 fiscal 2026. The retailer incurred $515.8 million in pre-tax charges related to restructuring efforts as it optimizes its store portfolio and reviews underperforming assets. The second-quarter performance included a decline in Foot Locker's comparable sales by 3.6% and earnings per diluted share of $3.53, below the expected $3.76. These results led to a sharp drop in DKS shares during one of their most volatile trading sessions. The restructuring is part of Dick’s broader strategy post-acquisition to streamline operations and align with long-term goals. The company expects total pre-tax charges related to these efforts could reach up to $750 million, signaling ongoing financial pressure as it repositions its store footprint.
Topics: earnings miss restructuring retail stock price movement