Dick's Reduces Foot Locker Store Closures as 'Fast Break' Pilot Drives Strong Sales

Dick’s Reduces Foot Locker Store Closures as ‘Fast Break’ Pilot Drives Strong Sales

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3.14.2026

Quick Facts

Dick’s is reducing planned Foot Locker store closures after ‘Fast Break’ pilot at 11 stores exceeded Dick’s business comparable sales performance
The retailer expanded the pilot to 21 locations and plans to renovate 250 Foot Locker stores by back-to-school season
Foot Locker is projected to achieve 1-3% comparable sales growth and $100-150 million operating income in 2026

Dick’s Sporting Goods will close fewer Foot Locker stores than originally planned after a successful pilot program showed previously underperforming locations can become profitable with the right format changes.

Executive Chairman Ed Stack told analysts Thursday that the company’s ‘Fast Break’ store pilot at 11 locations drove strong positive comparable sales that exceeded the Dick’s business performance. The pilot has expanded to 21 U.S. locations plus several European stores.

‘What we’ve found is some of those underperforming stores that are losing money or are just marginally profitable right now — based on what we’re seeing we can do from a Fast Break standpoint and renovating these stores — we can make these stores very profitable,’ Stack said.

The Fast Break format emphasizes clearer brand storytelling, improved product presentation, and a more focused assortment. The company removed roughly 30% of unproductive styles from shoe walls to streamline the selection.

Dick’s plans to rapidly scale the format across its Foot Locker fleet this year. By back-to-school season, Foot Locker expects to have renovated 250 locations. The renovation push increased Dick’s capital expenditure guidance, with Foot Locker store investment now a significant component of the $1.5 billion net capex plan.

Just six months after acquiring Foot Locker for $2.5 billion, Dick’s projects the banner will post comparable growth and turn profitable in 2026. For the year ahead, Foot Locker is expected to produce comparable sales growth of 1% to 3% and operating income of $100 million to $150 million.

The acquisition helped drive Dick’s fourth quarter net sales up 59.9% to $6.23 billion. However, integration costs contributed to a 57.3% decline in net income to $128 million.

Some analysts remain cautious about the turnaround timeline. Jefferies analyst Jonathan Matuszewski questioned whether Dick’s can maintain high execution standards while managing the Foot Locker transformation. He noted it remains unclear if the Fast Break pilot success will translate when scaled to 250 stores.

Despite concerns, brand partners are supporting the vision. Stack highlighted brand activations with Nike, Jordan, and Adidas at Los Angeles stores during the NBA All-Star game as evidence of strengthened relationships.

Dick’s expects the combined entity to generate around $22 billion in net sales for 2026, with operating income up to $1.83 billion. The company projects adjusted earnings per share between $13.50 and $14.50, below the $14.67 analyst consensus.