Dick’s Sporting Goods on Tuesday missed estimates for third-quarter profit and warned of up to $750 million in charges tied to a sweeping review of its recently acquired Foot Locker business that includes store closures and inventory cleanup.Shares of the company fell more than 1%. The footwear retailer also forecast a sharp drop in quarterly gross margin at Foot Locker. 3 Dick’s Sporting Goods on Tuesday missed estimates for third-quarter profit and warned of up to $750 million in charges tied to a sweep ...

Dick's Sporting Goods is getting an early start on spring cleaning. The retailer said Tuesday it intends to close an unspecified number of Foot Locker locations after completing its acquisition of the company in September."Our first priority is clear. We need to clean out the garage of underperforming assets," executive chairman Ed Stack told investors during Dick's third-quarter earnings call. "This means clearing out unproductive inventory, closing underperforming stores, and rightsizing assets that don' ...

Company Operations - REI's New York store is closing [1] - The closure is mourned by Manhattan bathroom aficionados [1] - The store is a beloved spot but not necessarily revenue-generating [1]

Core Insights - 7-Eleven remains the leader in the global and U.S. convenience store markets but is concerned about potential complacency affecting innovation and execution [2] - The company is focusing on next-generation stores and expanding its footprint, with plans for significant store additions ahead of a planned IPO in 2026 [2] Expansion Plans - 7-Eleven announced plans to add 600 new stores by 2027 and 1,300 new stores in North America by 2030, emphasizing larger-format stores with fuel pumps [4] - Despite these expansion goals, the overall North American store count may not increase significantly due to the closure of underperforming locations [5] Store Closures - The company has closed 444 underperforming stores and has seen a trend of closing more stores than it opens over the past two years [5][6] - The last fiscal year where 7-Eleven added more stores than it lost was in February 2022, following the acquisition of nearly 4,000 Speedway locations [7] - For the fiscal year ending February 2023, the company closed 46 more stores than it opened, followed by a net loss of 45 stores for the year ending February 2024 and a loss of 159 total sites for the year ending February 2025 [7]

Core Insights - Cato Corporation's shares have increased by 11.5% following the release of its earnings results, significantly outperforming the S&P 500 index's 1.4% growth during the same period [1] - Despite a year-over-year earnings decline, Cato's shares are up 12% over the past month, compared to the S&P 500's 6.5% rise, indicating renewed investor optimism [1] Financial Performance - Cato reported a first-quarter 2025 net income of $3.3 million, or 17 cents per share, a decline of approximately 69% from $11 million, or 54 cents per share, in the same period last year [2][3] - Total revenues decreased by 3.9% to $170.2 million from $177.1 million a year ago, with retail sales making up the majority at $168.4 million; same-store sales remained flat [2] Operating Metrics - Gross margin slightly declined to 35.1% of sales from 35.8% in the prior year quarter, attributed to lower merchandise contribution due to increased markdowns [4] - Selling, General and Administrative (SG&A) expenses decreased by 2.5% year over year to $55.3 million, but as a percentage of sales, SG&A rose to 32.8% from 32.4% [4] Cost Structure - Depreciation costs increased to $2.6 million from $2 million, while interest and other income fell significantly to $1.2 million from $5.8 million, impacted by a prior year's gain from land sales [5] - Income before taxes declined by 63.5% year over year to $4.2 million, with income tax expense rising to $0.9 million from $0.6 million due to changes in tax rates [5] Management Commentary - Cato's leadership highlighted the cautious consumer spending environment, with CEO John Cato noting general economic uncertainty and potential tariff impacts as contributing factors to a restrained outlook [6] - Although sales trends improved later in the quarter, the management maintained a measured tone regarding recovery projections for the remainder of the year [6] Strategic Actions - During the quarter, Cato did not open any new locations and permanently closed eight stores, reducing its total store count to 1,109 from 1,171 a year ago [7] - This contraction reflects the company's adaptation to changing consumer behaviors and efforts to optimize its physical footprint [7] Capital Management - Cato repurchased 294,036 shares during the quarter, indicating confidence in its valuation and commitment to returning capital to shareholders [8] - The company's financial position remained stable, with cash and cash equivalents increasing to $31.3 million from $20.3 million, while short-term investments decreased to $48.6 million from $57.4 million [8]