Dick's Sporting Goods misses Q2 estimates, closes 113 stores, shares plunge

Fernanda Tronco Wed, August 26, 2026 at 4:00 PM PDT | 6 min read

• DKS

A major sportswear retailer is reshaping its store footprint as it integrates a recently acquired business, and the results suggest the strategy is coming at a much higher price than the company and investors expected.

The retailer has been closing locations, reviewing underperforming assets, and taking hundreds of millions of dollars in related charges. Now, a sharp earnings miss and a lowered outlook have sent its stock tumbling in one of the most dramatic trading sessions in its history.

Founded in 1948, Dick's Sporting Goods is one of the largest sports-goods retailers in the U.S., selling sports equipment, clothing, and footwear through a portfolio of brands and retail concepts.

The company operates under multiple banners, including Dick's Sporting Goods, Golf Galaxy, Public Lands, Going Going Gone!, Dick's House of Sport, Golf Galaxy Performance Center, Foot Locker, Kids Foot Locker, Champs Sports, WSS, and atmos. It also operates GameChanger, a sports technology platform.

Dick's Sporting Goods Closes 113 Stores in 2026

Dick's Sporting Goods (DKS) has closed 113 stores across its portfolio during fiscal 2026 through the second quarter, according to the company's second-quarter earnings release.

The closures include:

• 3 locations within the broader Dick's business
• 110 locations within the Foot Locker business

The company also opened stores during the period:

• 4 new locations within its Dick's business
• 27 new stores within the Foot Locker business

As of Aug. 1, 2026, Dick's Sporting Goods operated 3,104 store locations across its Dick's and Foot Locker businesses.

The store closures were concentrated heavily within the Foot Locker business, reflecting the company's effort to reposition the portfolio following its acquisition of the footwear retailer.

Why Dick's Sporting Goods Is Closing Stores

Dick's Sporting Goods acquired Foot Locker in September 2025 in a $2.5 billion transaction. The deal brought Foot Locker's global footwear and apparel business into Dick's Sporting Goods' portfolio and expanded the company's international retail presence.

Following the acquisition, Dick's Sporting Goods began reviewing what it calls "unproductive assets." The review includes:

• Optimizing inventory
• Closing underperforming stores
• Right-sizing assets that do not fit the company's long-term strategy for the Foot Locker business

Of the Foot Locker business's fiscal 2026 closures, 67 stores were identified as part of that review of unproductive assets. The company also relocated or remodeled 41 stores during the year as it works to reposition its store portfolio.

Restructuring Costs

The restructuring has come with substantial costs.

• $125.8 million in pre-tax charges during the 26 weeks ended Aug. 1, 2026
• $515.8 million in total charges related to the effort to date
• Expected total pre-tax charges of up to $750 million, including approximately $200 million in fiscal 2026, with the remainder expected over the medium term

Dick's Sporting Goods Reports Weaker-Than-Expected Results

The store changes come as the retailer confronts a more difficult environment for athletic footwear and apparel.

During the second quarter of fiscal 2026, Dick's Sporting Goods reported:

| Metric | Result | |--------|--------| | Net sales | Increased 53.2% year over year to $5.59 billion | | Net income | Declined 17.3% | | Dick's comparable sales | Climbed 4.9% | | Foot Locker comparable sales | Fell 3.6% | | Earnings per diluted share | $3.53 adjusted (below the $3.76 expected) |

The sharp increase in consolidated sales was largely driven by the inclusion of Foot Locker following the acquisition. At the same time, the Foot Locker business continued to struggle, with comparable sales declining 3.6% during the quarter.