It's big news in the world of sports retailers: Dick's Sporting Goods is buying Foot Locker for $2.4 billion, reports the Wall Street Journal. The Foot Locker name isn't going away, however: Dick's plans to keep it and associated brands such as Kids Foot Locker and Champs Sports as a stand-alone business unit. The acquisition adds to a recent string of shakeups in the industry, with Skechers announcing a $9 billion deal to be taken private earlier this month, per the AP.
The idea behind the acquisition, according to Dick's CEO Lauren Hobart, is to merge both companies' strengths, expand the company's global presence, and "serve the evolving needs" of customers through upgraded store formats and a wider range of products. The deal would give Dick's its first international retail footprint, since Foot Locker currently operates about 2,400 stores in 20 countries. The footwear industry has been facing mounting pressure because of President Trump's tariffs and its reliance on overseas manufacturing, especially in Asia.
Foot Locker shareholders will have the option to receive either $24 in cash or a specified number of Dick's shares for each share they hold. The company's shares, which have slumped this year, soared 80% on the news, while those at Dick's fell about 10%, notes CNBC. The takeover still requires approval from Foot Locker's shareholders but is expected to be finalized in the second half of the year. (This content was created with the help of AI. Read our AI policy.)
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