Foot Locker becomes cause for concern for Dick’s as sneakers lose ground

Dick’s Sporting Goods lowers its 2026 forecasts as demand for sneakers falls short of expectations. Its new subsidiary, Foot Locker, in particular, is struggling with high inventory levels and steep discounts.

Are sneakers out of fashion?

Foot Locker, which Dick’s acquired last year for $2.4 billion (over 2 billion euros), appears particularly vulnerable to the deteriorating market. The sneaker chain’s comparable sales fell by 3.6% in the second quarter. Dick’s now expects stagnation at best for the full fiscal year; previously, the company had anticipated growth.