Dick’s Sporting Goods plans to close an unspecified number of Foot Locker stores as part of a restructuring aimed at boosting profitability by fiscal 2026.

Executives said they are taking aggressive steps—such as markdowns, asset impairments, and selective closures—to streamline Foot Locker’s operations.

The restructuring will pressure Foot Locker’s near-term sales and margins, even as Dick’s core stores posted stronger-than-expected comparable sales growth.

Dick’s raised its full-year sales and earnings outlook after reporting better-than-anticipated quarterly results, boosted significantly by Foot Locker’s added revenue, CNBC has reported.

While the $2.4 billion acquisition expands Dick’s reach and competitive position, the company is now focused on fixing Foot Locker’s long-standing performance issues through store tests and merchandising changes.