Dick’s Sporting Goods to Acquire Foot Locker for $2.4 Billion to Strengthen Nike Market Position

Under the agreement, Foot Locker shareholders will receive either $24 in cash per share — a 66% premium over the stock’s average price over the past 60 days — or a portion of Dick’s stock. The deal will be funded through a mix of cash on hand and new debt.

Foot Locker's Struggles Make It a Target

Foot Locker has been undergoing a turnaround led by CEO Mary Dillon, but a weak stock performance — down 41% this year — and broader economic pressures made the company vulnerable to acquisition.

“Joining forces with Dick’s will help expand sneaker culture and enhance our position,” said Dillon, calling the deal a reflection of the progress her team has made.

A Strategic Move for Growth

Dick’s reported $13.44 billion in revenue last fiscal year, nearly double Foot Locker’s $7.99 billion. Despite being longtime competitors, Dick’s plans to operate Foot Locker as a stand-alone brand, maintaining its sub-brands like Kids Foot Locker, WSS, Champs, and atmos.

CEO Lauren Hobart said both businesses will remain independent to preserve brand identity, noting that most consumers “may not even realize” the two are under the same company.

Nike and Global Reach Key to the Deal

The merger gives Dick’s a stronger foothold in the Nike wholesale market, where both companies are top partners. Nike CEO Elliott Hill welcomed the deal, calling both retailers “storied and respected brands” with deep connections to athletes and sneaker culture.

The acquisition also provides Dick’s with international exposure for the first time, as Foot Locker operates 2,400 stores across 20 countries. It also gives access to a younger, more urban consumer base that typically doesn’t shop at Dick’s.

Mixed Reactions on Wall Street

Foot Locker shares jumped over 80% after the announcement, while Dick’s shares fell 15%, reflecting investor concerns about the risks of integration and long-term returns.

TD Cowen downgraded Dick’s stock, calling the acquisition a “strategic mistake,” and warned it may deliver low returns and raise financial risks.

Dick’s Executive Chairman Ed Stack responded to the skepticism, saying the company is confident in the move and only pursued it after a thorough evaluation.

“If we didn’t see a clear benefit for Dick’s, we wouldn’t be doing it,” Stack said.

Financial Snapshot and Future Plans

Dick’s reported a 4.5% increase in comparable sales and $3.24 in earnings per share for the quarter. Foot Locker, however, saw a 2.6% drop in comparable sales and expects a net loss of $363 million, including impairment charges.

Despite these figures, Hobart said the merger positions Dick’s for long-term growth, expanding its total market opportunity from $140 billion to $300 billion.

“This is a transformative step,” Hobart said. “It strengthens our global reach and creates long-term value for all stakeholders.”