s’ net income only reached $128.3 million, or $1.41 per share, a 57 per cent decline from $299.97 million, or $3.62 per share, last year. The decline in sales can largely be attributed to Foot Locker’s performance, as the footwear and lifestyle retailer experienced a pro forma comparable sales decline in the fourth quarter. Neil Saunders, managing director and retail analyst at GlobalData, told Inside Retail the results show two very different performances within the business. “Under the punchy headline sales growth, the latest numbers tell the tale of two athletes. One, Dick’s, is in excellent shape, continuing to power ahead and win races. The other, Foot Locker, is somewhat unfit and is in desperate need of training. Fortunately, Dick’s knew what it was taking on when it acquired Foot Locker [in September 2025] and has already started to put a new regime in place.” Lauren Hobart, Dick’s Sporting Goods president and CEO, shared a rather positive outlook for the company for the year ahead. “Dick’s Sporting Goods and Foot Locker are perfectly positioned at the intersection of sport and culture, which is becoming an even stronger part of everyday life. We look forward to returning the Foot Locker business to both top-line and bottom-line growth in 2026. We have deep conviction in the tremendous opportunity ahead for our entire company,” said Hobart. How Foot Locker’s new regime is cleaning out the garage The new regime Saunders is referring to includes the closure of 57 stores globally across Foot Locker, Champs, Kids Foot Locker and WSS, as well as the launch of the ‘Fast Break’ initiative in fiscal 2025. Implemented in 11 Foot Locker stores thus far, ‘Fast Break’ is a pilot store initiative designed to improve profitability and the customer experience through a more streamlined, visually appealing presentation featuring approximately 30 per cent fewer SKUs than in current stores. Commenting in the company’s earnings statement, Dick’s Sporting Goods executive chairman Ed Stack said the early results from the initiative are encouraging. “We’re very encouraged by what we’re seeing with our Fast Break initiative, the evolution of our 11-store Foot Locker pilot, which we plan to rapidly scale in 2026. In addition, our ‘clean out of the garage’ efforts have set up Foot Locker to play offense and deliver the inflection point we expect beginning with back-to-school. We remain very confident that Dick’s Sporting Goods and Foot Locker are stronger together.” Stack added that the ‘Fast Break’ concept will reach roughly 250 Foot Locker locations across the US and Europe by the back-to-school season. Saunders said the clean-up effort has been costly in the short term but should help reset the business. “Overall, while Foot Locker is causing some short-term disruption to Dick’s financials, we are impressed by the speed with which management has moved to sort out problems and put Foot Locker on a better trajectory,” said Saunders. “Indeed, they seem to have done more in 6 months of ownership than Foot Locker accomplished in many years as a standalone business. The efforts should result in a turnaround in 2026, with comparables and profitability both expected to swing into positive territory. If this is achieved, it will be a major win that underlines the skill of the Dick’s Sporting Goods’ leadership team.” Experts’ predictions for Dick’s Sporting Goods fiscal year 2026 Another major factor in Dick’s Sporting Goods’ sales figures for 2026 was its impressive brick-and-mortar expansion, which included 16 House of Sport stores and 15 Dick’s Field House locations in the last year. Saunders added that the retailer performed particularly well during the holiday shopping period. “Dick’s Sporting Goods remained a favorite over the holidays and continued to pull in more customers for gifting as well as self-purchases,” said Saunders. “This was especially true at House of Sport stores, which continue to wow and entice consumers, resulting in higher transaction volumes and larger average baskets. “The model of moving to a more experiential and engaging format is working, and it is helping Dick’s defend itself against rising competitive threats from online players, off-price retailers, and lower-priced athleisure brands. The plans to open 14 additional locations during the new fiscal year underline the confidence in the format and will help to provide a lift to the numbers across 2026.” Retail strategist Christine Russo, principal of Retail Creative and Consulting Agency (RCCA), said the company’s physical footprint remains a key advantage. “Dick’s Sporting Goods has become the default destination for sporting goods, because they have more physical stores than the competition, more experiential retail and a high-margin private label product. Their category has uncapped pricing power because youth sports are exploding, equipment technology is advancing, and fandom culture is stronger than ever. Each of these contributes to a virtually non-discernible price ceiling,” explained Russo. She added that with Dick’s Sporting Goods’ acquisition of Foot Locker, the company added over 2,600 Foot Locker locations to its portfolio, bringing its total to nearly 75 per cent of the store count of Walmart, and has been carrying it with an impressive depth and breadth that even a big-box retailer like Walmart can’t mimic. “This de facto scale advantage will continue to make them the dominant destination,” Russo concluded. Should Dick’s Sporting Goods continue to successfully “clear out the garage” of Foot Locker’s underperforming stores and less-than-exciting merchandise, while continuing to open its own brick-and-mortar presence, experts remain positive about profitability for the year ahead. Further reading: Can new CEO Michael Fiddelke revive Target’s profitability in light of Q4 results?