Dick’s Sporting Goods is acquiring the struggling footwear chain Foot Locker for approximately $2.4 billion. This acquisition follows Skechers’ announcement of a $9 billion buyout by investment firm 3G Capital just weeks prior. Dick’s plans to maintain Foot Locker as a separate entity while preserving its branding, including Kids Foot Locker and Champs Sports. CEO Lauren Hobart emphasized the creation of a global platform that caters to evolving consumer needs through enhanced store designs and omnichannel experiences.
Both companies are helmed by women, with Hobart leading Dick’s since 2021 and Mary Dillon at Foot Locker since 2022. Foot Locker is currently undergoing a turnaround plan aimed at strengthening ties with major brands like Nike, focusing on basketball and sneaker culture.
The retail sector is increasingly wary of the impact of tariffs imposed during Donald Trump’s presidency, particularly on imports from Asia, where about 97% of shoes and apparel sold in the U.S. are produced. Foot Locker’s shares have plummeted 41% this year, while Skechers has also seen a decline in its stock.
With roughly 2,400 retail stores across 20 countries and $8 billion in global sales last year, Foot Locker provides Dick’s with substantial growth potential and international reach. Jefferies analyst Jonathan Matuszewski estimates that about 33% of Foot Locker’s sales come from outside the U.S., a figure that could boost Dick’s international sales to approximately 12% post-acquisition. The deal, pending Foot Locker shareholders’ approval, is expected to close in the latter half of the year, with Dick’s stock dipping over 10% while Foot Locker shares surged by 82%.
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