Dick’s Sporting Goods shares plunge 30% amid store closures

Dick’s Sporting Goods experienced a significant stock decline of over 30% following fiscal second-quarter earnings that missed Wall Street expectations. The company cited a challenging athletic footwear and apparel market and underperformance within its Foot Locker division as primary factors.

As part of a restructuring following its $2.5 billion acquisition of Foot Locker in 2025, Dick’s Sporting Goods closed 113 stores during the first half of fiscal year 2026. This included 110 Foot Locker locations and three Dick’s Sporting Goods stores. Management identified several Foot Locker locations as ‘inefficient assets’ that did not align with long-term strategy.

While total sales rose 53.2% year-over-year to $5.59 billion due to the Foot Locker integration, net income fell by 17.3%. The company has lowered its full-year guidance for both net sales and operating income. Despite the downturn, Director Robert Eddy purchased 4,000 shares of the company on August 26 at an average price of $128.69 per share.