Dick’s Sporting Goods to Acquire Foot Locker for $2.4 Billion

PITTSBURGH — Dick's Sporting Goods plans to buy the struggling footwear retailer Foot Locker for approximately $2.4 billion. The acquisition is the second such deal for a major footwear company within a short span, amid ongoing uncertainty related to U.S. tariffs.

Dick’s announced the acquisition on Thursday, stating it will operate Foot Locker as a standalone unit and maintain its various brands, which include Kids Foot Locker, Champs Sports, WSS, and the Japanese brand atmos. CEO Lauren Hobart expressed optimism about creating a new global platform that serves evolving consumer needs.

Foot Locker, which has faced difficulties as a mall-based retailer, boasts a notable presence with about 2,400 stores in 20 countries. Analysist Cristina Fernández from Telsey Advisory Group highlighted the potential of Foot Locker to attract urban consumers and enhance Dick’s profile in sneaker culture.

Despite the potential benefits, Dick’s investors reacted negatively to the announcement due to Foot Locker’s declining sales, with the company’s stock dropping over 14% immediately following the news.

Mary Dillon, the CEO of Foot Locker, emphasized that joining forces with Dick’s would improve their position in the market and enhance the shopping experience for customers. The acquisition is anticipated to be finalized in the latter half of this year, pending approval from Foot Locker’s shareholders and regulatory authorities.

Foot Locker’s stock has faced significant challenges, plummeting 41% this year, as it navigates changing market dynamics driven by major brands like Nike and Adidas shifting their sales strategies. Analysts expect that the combined strengths of both companies could reshape their future in the evolving sports retail market.