Dick’s Sporting Goods to close some Foot Locker stores; lifts full-year guidance
With its acquisition of Foot Locker now completed, Dick’s Sporting Goods is embarking on its next chapter of growth.
The sporting goods giant said that it is reviewing Foot Locker operations, which will include some store closures. As of Nov. 1, there were 2,593 stores across the Foot Locker businesses. Dick’s did not say how many stores would close or whether the review would include layoffs. (Dick's acquisition of Foot Locker was completed in September.)
In other changes, Dick’s named Matthew Barnes as president of Foot Locker International, effective Dec. 3. He will report to Dick’s executive chairman Ed Stack, as well as join Foot Locker’s management team.
“We are incredibly excited about our acquisition of Foot Locker, which marks a bold and transformative step that expands our reach and creates a global platform,” Stack said in the company’s third-quarter earnings report. “At Foot Locker, we've assembled a world-class management team and are taking decisive actions to 'clean out the garage' by clearing unproductive inventory, closing underperforming stores and laying the foundation for a fresh start in 2026. These steps, combined with our operational expertise, strong vendor relationships… will position the Foot Locker business for profitable growth."
Third Quarter
DIck's net income totaled $75.2 million, or $0.86 per share, for the quarter ended Nov. 1, compared with $227.8 million, or $2.75 per share, in the year-ago period. Excluding one-time items including the impact of the Foot Locker acquisition, Dick’s posted adjusted earnings per share of $2.78. Analysts had expected earnings of $2.71 per share.
Revenue rose to $4.168 billion from $3.057 billion.
Excluding Foot Locker, Dick’s comparable sales rose 5.7%. Dick’s does not plan to provide quarterly comparable sales for Foot Locker until the fourth quarter of fiscal 2026, when the stores will have a full 14 months of operations following the September acquisition.
The company said that its total consideration exchanged for the Foot Locker acquisition was $2.1 billion for the issuance of 9.6 million shares of Dick’s Sporting Goods common stock, $223.0 million in cash and $111.6 million from Dick’s pre-existing equity ownership in Foot Locker.
Dick’s opened 13 House of Sport locations and six new Field House locations during the third quarter. The retailer has opened “Collectors Clubhouse” in 20 House of Sport stores. The area is a dedicated space for trading cards, collectibles, memorabilia and community engagement. As of Nov. 1, the company operated 3,230 locations, including 885 stores across the Dick’s business and 2,593 across the Foot Locker businesses.
“In the third quarter, the Dick’s business comps grew 5.7 percent driven by increases in both average ticket and transactions, and we were pleased to deliver gross margin expansion,” said president and CEO Lauren Hobart. “Reflecting these strong results and our continued confidence, we are again raising our full-year 2025 outlook for the Dick’s business.”
Dick’s now expects full-year earnings per share to range between $14.25 and $14.55, up from its previous forecast of $13.90 to $14.50. The company also raised its full year 2025 guidance for comparable sales growth for the Dick’s business to a range of 3.5% to 4.0%, up from 2.0% to 3.5%.
