Foot Locker returns to growth but weighs on Dick's Sporting Goods as earnings miss
Foot Locker is showing signs of growth, but its acquisition has negatively impacted Dick's Sporting Goods' earnings. Dick's reported a miss on earnings due to significant charges related to the acquisition, despite exceeding revenue expectations. The company has adjusted its growth forecasts for both Dick's and Foot Locker for 2026.
- ▪Dick's Sporting Goods incurred $96.5 million in charges related to the acquisition of Foot Locker.
- ▪Foot Locker reported a comparable sales growth of 0.6%, marking its first increase since fiscal 2024.
- ▪Dick's raised its adjusted operating income guidance to a range of $1.71 billion to $1.83 billion.
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Foot Locker is slowly getting back to growth, but the costly turnaround of the legacy sneaker store is still weighing on its parent company Dick's Sporting Goods' bottom line, as the company posted an earnings miss on Wednesday. In the three months ended May 2, Dick's incurred $96.5 million in charges related to the acquisition. That includes $53.8 million for merger and acquisition costs like severance and store closings, and $42.7 million to clear through sale inventory. Those expenses contributed to a miss on Dick's bottom line, as top line results exceeded expectations.
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