On May 15, 2025, Dick's Sporting Goods announced its agreement to acquire Foot Locker for $2.4 billion, offering $24 per share—a significant 86% premium over Foot Locker's last closing price. The deal is expected to close in the second half of 2025, pending shareholder approval.

This acquisition aims to enhance Dick's presence in malls and international markets, as Foot Locker operates 2,400 stores across 20 countries, generating $8 billion in global sales last year. Dick's plans to maintain Foot Locker as a standalone business unit, retaining its existing brands. The acquisition will be financed through a combination of cash and new debt.

Founded in 1948 by Richard "Dick" Stack, Dick's Sporting Goods has grown into the largest sporting goods retailer in the United States. Headquartered in Coraopolis, Pennsylvania, the company operates over 800 stores across 47 states as of 2023. Under the leadership of CEO Lauren Hobart, who succeeded Edward W. Stack in 2021, Dick's has expanded its portfolio to include subsidiaries like Golf Galaxy, Public Lands, and House of Sport. In 2024, the company reported a 5.2% increase in comparable sales and earnings per diluted share of $14.05, up 15% from the previous year.

Foot Locker, Inc., established in 1974, is a multinational retailer specializing in footwear and sportswear. Headquartered in New York City, the company operates approximately 2,400 stores across 20 countries, generating $8 billion in global sales in 2024. Foot Locker's portfolio includes brands such as Kids Foot Locker, Lady Foot Locker, House of Hoops, Champs Sports, WSS, and atmos. In 2022, Mary Dillon was appointed CEO, succeeding Richard Johnson. Under Dillon's leadership, Foot Locker has been executing a turnaround plan to strengthen ties with major brands like Nike.

The acquisition is expected to bolster Dick's Sporting Goods' presence in malls and international markets, leveraging Foot Locker's extensive global footprint. By maintaining Foot Locker as a standalone business unit, Dick's aims to preserve the brand's identity while integrating operational efficiencies. Analysts suggest that the deal could enhance Dick's market leverage, particularly in the sneaker retail segment, and provide cost synergies.

Following the announcement, Foot Locker's stock surged over 82%, reflecting investor optimism about the acquisition. Conversely, Dick's Sporting Goods' stock declined by over 10%, indicating market concerns about the acquisition's cost and integration challenges.

The acquisition comes amid a broader trend of consolidation in the retail sector, as companies seek to navigate challenges such as declining mall traffic, shifting consumer preferences, and global trade tensions. Notably, this deal follows Skechers' $9.42 billion buyout by private equity firm 3G, highlighting the dynamic nature of the footwear and sporting goods industry.

In summary, Dick's Sporting Goods' acquisition of Foot Locker represents a significant strategic move to expand its market presence and leverage synergies in the competitive retail landscape. The success of this endeavor will depend on effective integration and the ability to adapt to evolving consumer behaviors and market conditions.