Dick's Sporting Goods plans $2.4 billion Foot Locker acquisition

On May 15, 2025, Dick's Sporting Goods announced its intention to acquire Foot Locker for approximately $2.4 billion. The acquisition aims to enhance Dick's global presence and allow it to access a younger consumer demographic while maintaining Foot Locker as a standalone entity. Dick's CEO Lauren Hobart expressed optimism about combining the two brands to meet evolving consumer needs. The merger arrives during a challenging retail climate, particularly for Foot Locker, which has faced declining sales and store closures in the U.S. market. Foot Locker's stock price has suffered a significant drop in recent times, making the acquisition by Dick's not only a strategic move but also one undertaken at a time of uncertainty regarding trade tariffs imposed by U.S. President Donald Trump, which further threaten the footwear industry. The combined entity will hold a competitive position in the sneaker market, especially concerning Nike, which has been increasingly reliant on wholesalers. This deal is expected to provide both companies with significant synergies, with estimates suggesting $100 million to $125 million in cost savings. Some analysts, however, caution that such mergers in the retail space have not historically yielded substantial benefits. While Dick's anticipates a successful integration and growth opportunity, the stock market’s initial reaction showed skepticism, with Dick's shares declining by around 13%. The acquisition positions Dick's to tap into a more diverse customer base that Foot Locker historically attracts, counterbalancing the brand’s own generally more affluent audience. Investors will be closely monitoring the deal as it unfolds in the coming months.