People walk by a Foot Locker store in Chicago.
Scott Olson/Getty Images
hide caption
toggle caption
Scott Olson/Getty Images
Athletic retailer Dick’s Sporting Goods plans to acquire Foot Locker, known for its presence in shopping malls, for approximately $2.4 billion.
Dick’s, the largest sports retail chain in the U.S., aims to leverage Foot Locker’s extensive global footprint of about 2,400 stores across 20 countries to reach a broader customer base.
Despite Foot Locker’s struggles with declining sales and store closures, Dick’s sees potential in combining their strengths to better serve the evolving needs of sports retail consumers.
Dick’s investors reacted negatively to the news, causing the stock to drop over 14% due to concerns about Foot Locker’s performance. However, Dick’s remains optimistic about the growth opportunities the acquisition presents.
Foot Locker’s CEO, Mary Dillon, expressed excitement about the collaboration, emphasizing the potential to enhance sneaker culture and the omnichannel experience for customers.
The deal is expected to be finalized in the second half of the year, pending approval from Foot Locker shareholders and regulatory authorities. Dick’s intends to maintain Foot Locker as a separate brand within its portfolio.
