Dick's now guides the Foot Locker business it bought for $2.5bn to an operating loss for the full year, and 104 of its owned stores have gone since February

One hundred and four stores.

That is how many owned Foot Locker Business locations have closed since Dick's Sporting Goods opened its fiscal year in February, out of 2,307. Nine opened. Forty four of the closures were WSS, which is close to a third of that chain, and the company says 67 of the total came out of its review of unproductive assets.

The stores are the visible part. The number underneath them was filed on Tuesday morning, and it is a loss.

The segment line

Dick's reports the two businesses separately, and segment profit is what it calls operating income for each.

For the 13 weeks to 1 August, the Dick's Business turned $3,849.9m of net sales into $485.2m of segment profit, a margin of 12.6 percent. The Foot Locker Business turned $1,736.9m of net sales into a segment loss of $31.9m. Gross margin at Foot Locker was 25.7 percent against 37.8 percent at Dick's.

The half year tells a sharper story than the quarter. Across 26 weeks the Foot Locker loss is $14.4m, which is smaller than the quarterly one, so the first quarter carried a segment profit of about $17.5m and the second quarter took it back and more.

Comparable sales, calculated as though Foot Locker had been owned throughout, fell 3.6 percent in the quarter. The international stores fell 3.3 percent. The Dick's Business rose 4.9 percent.

The guidance is now a loss for the year

Dick's has left the Dick's Business outlook where it was and moved the other one.

The Foot Locker Business is now guided to net sales of $7.4bn to $7.5bn and a segment loss of $40m to $80m, which is negative 0.5 percent to negative 1.1 percent of sales. Proforma comparable sales are guided to a range of negative 2.0 percent to zero. Against a first half loss of $14.4m, that arithmetic leaves $25.6m to $65.6m of loss still to come.

The Dick's Business is guided to segment profit of $1.54bn to $1.60bn on net sales of $14.5bn to $14.7bn, a margin of 10.6 to 10.9 percent, with comparable sales of 2.5 to 4.0 percent. Consolidated earnings guidance is $10.94 to $11.94 a diluted share on about 90 million shares.

Ed Stack, the executive chairman, said the athletic footwear and apparel marketplace became "increasingly promotional" as the quarter went on, and that the Foot Locker Business carries greater exposure to launch and retro product. Lauren Hobart, the chief executive, said the company remains confident in the long-term opportunity at Foot Locker. Both statements are theirs.

What has been spent

Dick's closed the acquisition on 8 September 2025 under a merger agreement signed the previous May. Total consideration was $2.5bn: $2.1bn of stock in 9.6 million shares, $223.0m of cash, and $111.6m attributed to a stake it already held.

The review of unproductive assets has cost $125.8m of pre-tax charges in the first half and $515.8m to date. The company expects up to $750m in total, $200m of it in this fiscal year.

Set against the purchase price, the charges already taken are 20.6 percent of what was paid, and the ceiling is 30.0 percent of it.

The consolidated numbers carry the shape of a business that is much bigger and earns less. Net sales rose 53.2 percent to $5,587m. Operating margin fell 451 basis points to 7.9 percent. Net income fell 17 percent to $315m and earnings per diluted share fell 26 percent to $3.50, on 9 million more shares. Inventories are up 63 percent to $5,565m, of which $2.0bn sits at Foot Locker.

The tariff refund, which is separate

One figure in the notes belongs to neither segment.

The company says that following an order of the United States Court of International Trade requiring the refund of all previously paid tariffs under the International Emergency Economic Powers Act, it received $59.0m of refunds and $2.1m of related interest income during the quarter. It has treated the money as a gain contingency under Accounting Standards Codification 450-30, which recognises nothing until the gain is realised or realisable. The refunds went to cost of goods sold. The interest went to other income.

Of the $59.0m, $38.1m relates to tariff costs incurred in the prior year, and that portion, together with the interest, is stripped out of non-GAAP earnings per share.

The board declared a quarterly dividend of $1.25 a share on 24 August, payable 25 September to holders of record on 11 September, against $1.2125 a year ago.