Dick’s Sporting Goods is Buying Foot Locker for $2.4 Billion

Dick’s Sporting Goods has announced plans to acquire longtime rival Foot Locker in a $2.4 billion agreement, marking a major move in the evolving retail landscape as apparel companies seek to strengthen their positions amid global trade tensions and shifting consumer habits.

Revealed on Thursday, the deal signals Dick’s first significant step toward international expansion. The Pittsburgh-based retailer said it will retain the Foot Locker brand and operate the footwear chain as a standalone business. The acquisition will give Dick’s access to a wider global footprint through Foot Locker’s 2,400 stores across 22 countries.

While the move presents an opportunity for growth, it also brings notable risks. The footwear industry faces ongoing uncertainty due to former President Donald Trump’s tariff policies, which could inflate prices and strain supply chains – especially since nearly all shoes sold in the U.S. are imported, primarily from China and Vietnam.

In addition, Foot Locker has struggled in recent years. Once operating nearly 3,000 stores, the company has been closing hundreds of locations due to declining foot traffic in American shopping malls. Attempts to rebrand and appeal to younger, more diverse consumers have fallen short, with the company reporting a 5.8% decline in fourth-quarter sales this year, largely driven by weakened Nike sales – Foot Locker’s largest brand partner.

Despite these headwinds, Dick’s executive chairman Ed Stack expressed confidence in the acquisition. “We believe there is meaningful opportunity for growth ahead,” he said. “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.”

Investors responded with mixed reactions. Foot Locker shares surged 80% in premarket trading following the announcement, reflecting optimism about the brand’s potential turnaround under new leadership. Dick’s, however, saw its shares dip 13%, as concerns about the cost and complexity of the integration weighed on market sentiment. The acquisition represents a 66% premium over Foot Locker’s most recent stock price, which had fallen more than 40% over the past year.

Retail analyst Neil Saunders, managing director at GlobalData, said the merger could offer strategic advantages. “While there is some overlap between the locations, the nature of the stores is different, and Foot Locker would give Dick’s access to a wider selection of malls and customers,” he noted.

However, he also cautioned that the deal could draw antitrust scrutiny given Dick’s commanding presence in the sporting goods market, which operates over 700 stores nationwide.

As the global retail landscape continues to evolve, this high-stakes acquisition could reshape how major players adapt to economic uncertainty, consumer behavior, and international competition.