Dick's Sporting Goods to acquire Foot Locker for $2.4 billion, expanding and dominating sneaker market

From CNBC: 2025-05-15 12:28:00

Dick’s Sporting Goods plans to acquire Foot Locker for $2.4 billion to expand internationally and corner the Nike sneaker market. Foot Locker, facing stock challenges, will be operated as a stand-alone business unit with its current brands. The acquisition will give Dick’s access to a new consumer demographic and international markets.

Wall Street expects the FTC to approve the merger, which will make Dick’s a dominant force in the wholesale sneaker market, particularly with Nike products. The deal will also increase Dick’s total addressable market to $300 billion. Foot Locker shares surged 80% post-announcement, while Dick’s shares fell.

While Dick’s anticipates positive financial results, some analysts have doubts about the merger’s strategic value. Foot Locker preannounced a net loss of $363 million, while Dick’s reported a strong quarter with 4.5% sales growth. The companies are confident in the merger’s success and are prepared for challenges ahead.



Read more at CNBC: Dick’s Sporting Goods to acquire Foot Locker for $2.4 billion