Sportswear giant closes 113 stores as shares plunge

Sportswear giant Dick's Sporting Goods is closing 113 stores as part of a strategy to integrate a recently acquired business, Foot Locker, and to right-size its underperforming assets. The closures, announced after the company's second-quarter earnings release, include 110 Foot Locker locations and three Dick's Sporting Goods stores.

The company also opened 27 new Foot Locker locations and four new Dick's Sporting Goods stores during the period. The store closures and related charges have resulted in a sharp earnings miss, with the company reporting adjusted earnings per diluted share of $3.53, below the expected $3.76. Dick's Sporting Goods expects total pre-tax charges related to the restructuring to reach up to $750 million, with $515.8 million already incurred.

The weaker-than-expected performance, particularly in Foot Locker's comparable sales declining 3.6%, prompted the company to lower its full-year outlook. Shares of Dick's Sporting Goods plunged more than 30% on August 25, marking its worst single-day stock decline on record. The retailer is now focusing on maintaining competitive pricing in a promotional retail environment and investing in its Dick's business through store growth, technology, and supply-chain improvements.