Dick's Sporting Goods is eating massive losses after their Foot Locker acquisition turned into a total disaster six months in. The company dropped numbers showing they'll take between 500 and 750 million in charges while closing dead stores and dumping inventory that nobody wants. Chairman Ed Stack basically admitted they bought a dumpster fire and need to clean house immediately.
The sneaker chain is projected to tank with comparable sales dropping somewhere in the mid-to-high single digits this quarter. Mall traffic keeps dying, and shopping habits have changed enough that Foot Locker can't keep up anymore. The whole mess stems from Dick's paying 2.4 billion for a retailer that apparently needed way more fixing than anyone realized during due diligence.
The sneaker chain is projected to tank with comparable sales dropping somewhere in the mid-to-high single digits this quarter. Mall traffic keeps dying, and shopping habits have changed enough that Foot Locker can't keep up anymore. The whole mess stems from Dick's paying 2.4 billion for a retailer that apparently needed way more fixing than anyone realized during due diligence.
