Dick's Sporting Goods laces up deal, acquires Foot Locker for $2.4B

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.

Deal still needs approval from shareholders

The deal was unanimously approved by the boards of directors for both companies. It still needs to be approved by Foot Locker shareholders though. The deal will allow Foot Locker shareholders to choose either $24.00 in cash or 0.1168 shares of Dick’s Sporting Goods’ stock for each share of the Foot Locker common stock.

Goldman Sachs is serving as the financial advisor for Dick’s Sporting Goods, per the news release, while Evercore is serving as financial advisor to Foot Locker.

Mary Dillon, CEO of Foot Locker, said in the news release that the sale will help Foot Locker “expand sneaker culture,” and the plan presented to shareholders gives them flexibility.

“We are pleased to provide shareholders with a transaction structure that offers the choice of significant and immediate cash value or the opportunity to invest in the combined company and benefit from the substantial upside potential,” Dillon said.

Dick’s Sporting Goods Executive Chairman Ed Stack said in a statement that Foot Locker is a culturally significant brand, and buying the company will allow Dick’s Sporting Goods to grow.

“By applying our operational expertise to this iconic business, we see a clear path to further unlocking growth and enhancing Foot Locker's position in the industry,” Stack said. “Together, we will leverage the complementary strengths of both organizations to better serve the broad and evolving needs of global sports retail consumers."

Contributing: Joey Garrison, USA TODAY

Saleen Martin is a reporter on USA TODAY's NOW team. She is from Norfolk, Virginia – the 757. Email her at [email protected].