On May 15, U.S. sports retail giant DICK’S Sporting Goods announced that it will acquire Foot Locker, a brand synonymous with sneaker culture. The deal is valued at approximately $2.4 billion, with the transaction expected to close in the second half of 2025.
A New Global Powerhouse in Sports Retail
The acquisition will combine DICK’S Sporting Goods’ network of 850 stores across the United States with Foot Locker’s 2,400 stores in 20 countries worldwide, forming a global-scale retail platform that spans both the sports and lifestyle sectors.
Foot Locker, known for its focus on sneakers, operates multiple sub-brands including Kids Foot Locker, Champs Sports, WSS, and atmos. In 2024, the company recorded $8 billion in revenue. Following the acquisition, these brands will continue to operate under their existing identities, and Foot Locker will function as an independent business unit within the DICK’S portfolio.
Bridging Sneakerheads and Next-Gen Athletes
Traditionally focused on performance sportswear, DICK’S Sporting Goods will, through this deal, significantly expand its reach into street fashion and sneaker culture—particularly among younger, trend-driven consumers often referred to as “sneakerheads.”
Lauren Hobart, CEO of DICK’S Sporting Goods, commented in a statement, “We look forward to welcoming Foot Locker’s talented team and building upon their expertise and passion for their business, which we intend to honor and amplify together.”
Under the terms of the agreement, Foot Locker shareholders will have the option to receive either $24.00 in cash per share or 0.1168 shares of DICK’S common stock. The offer represents a premium of approximately 66% over Foot Locker’s 60-day volume-weighted average share price, making it a compelling deal for shareholders.
The acquisition is expected to be accretive to DICK’S earnings per share (EPS) in the first full year post-closing. The company also anticipates cost synergies in the range of $100 to $125 million in the medium term, driven by improvements in logistics and procurement.
The acquisition of Foot Locker—including culturally influential brands like atmos—marks a significant strategic step for DICK’S Sporting Goods as it evolves beyond traditional sports retail into a more hybrid model of athletic performance, fashion, and lifestyle.
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