Dick’s Sporting Goods is acquiring sneaker chain Foot Locker, Dick’s company executives announced on May 15.
The company’s acquisition of Foot Locker has an equity value of $2.4 billion and an enterprise value of $2.5 billion and if approved, the deal will close during the second half of the year, Dick’s Sporting Goods said in a news release.
Dick’s is based in Coraopolis, Pennsylvania, about 14 miles northwest of Pittsburgh, and has hundreds of stores across the United States.
Foot Locker is based in New York and owns brands such as Kids Foot Locker, Champs Sports, WSS, and atmos, and has 2,400 stores in 20 countries, including North America, Europe, Asia, Australia and New Zealand.
Foot Locker also has franchises in Europe, the Middle East and Asia, and in 2024, Foot Locker made $8 billion worldwide, Dick’s Sporting Goods said.
The merger comes amid a tariff war between the U.S. and China. Most recently, President Donald Trump agreed to reduce reciprocal tariffs on goods imported from China for 90 days. The tariffs will form 125% to 10%, lining up with tariffs the Trump administration has issued for other countries.
Foot Locker also said on May 15 that during the first quarter of 2025, sales decreased by 2.6% from last year. Foot Locker added that net loss is expected to be $363 million compared to a net income of $8 million last year.
What does Dick’s Sporting Goods have planned for Foot Locker and its portfolio?
Dick’s Sporting Goods said in the news release that it plans to continue running Foot Locker as a standalone business unit, so Foot Locker brands will stay put.
According to Dick's Sporting Goods, buying Foot Locker will allow Dick’s Sporting Goods to serve consumers in new locations across the United States, as well as worldwide, for the first time.
The merger will allow Dick’s Sporting Goods to use new concepts to serve customers, according to the announcement. In April 2024, Foot Locker announced a new concept for its stores that promised customers a new, immersive layout, bright new sections highlighting new releases, and a communal try-on area, and more. Dick’s said it plans to combine its own culture with Foot Locker’s reimagined store concept, providing “an unmatched immersive and innovative retail experience for consumers.”
While Dick’s anticipates positive changes if the purchase is finalized, results could look differently due to the current economic climate and factors such as changes to international trade relations, supply chain constraints, delays and disruptions, and fluctuations in product costs and availability due to tariffs, executives said.