Dick’s Sporting Goods Restructures Foot Locker Business With Some Store Closures, Inventory Cleanup
Synopsis
The company said that these actions, along with additional merger and integration costs, are expected to result in future pre-tax charges of $500 million to $750 million.
Dick’s Sporting Goods (DKS) said on Tuesday that it has initiated a review of unproductive assets, which includes cleaning up inventory, closing underperforming stores, and right-sizing assets that don't align with its strategy for the Foot Locker Business.
The company said that these actions, along with additional merger and integration costs, are expected to result in future pre-tax charges of $500 million to $750 million.
In September, Dick’s Sporting Goods acquired Foot Locker, another U.S.-based footwear and apparel retailer, in a $2.4 billion deal.
Shares of Dick’s Sporting Goods were down over 8% in premarket trading.
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