Dick’s Sporting Goods to Acquire Foot Locker in $2.4 Billion Deal

Dick’s Sporting Goods announced on May 15 that it has reached an agreement to acquire global sneaker retailer Foot Locker in a deal valued at $2.4 billion in equity and $2.5 billion in enterprise value, USA Today reports.

The acquisition, pending shareholder and regulatory approval, is expected to close in the second half of the year.

Based in Coraopolis, Pennsylvania, Dick’s operates hundreds of stores across the United States. The acquisition marks a significant expansion for the company, offering entry into new domestic and international markets. Foot Locker, headquartered in New York, operates approximately 2,400 stores in 20 countries and oversees brands including Kids Foot Locker, Champs Sports, WSS, and atmos. It also runs franchises across Europe, the Middle East, and Asia.

According to Dick’s, Foot Locker generated $8 billion in global revenue in 2024. However, the sneaker chain reported a 2.6% drop in first-quarter sales for 2025, with an anticipated net loss of $363 million—compared to an $8 million net income during the same period the previous year.

Despite recent challenges, Dick’s plans to keep Foot Locker as a standalone business unit and retain its existing brand portfolio. Executives say the merger will allow the combined company to reach consumers in new geographic areas and provide a more immersive and innovative retail experience.

Foot Locker had recently introduced a refreshed store concept, including enhanced layouts, communal try-on spaces, and curated product displays. Dick’s intends to integrate its own retail strategies with this new model.

“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,” said Ed Stack, Executive Chairman of Dick’s Sporting Goods. “Together, we will leverage the complementary strengths of both organizations to better serve the broad and evolving needs of global sports retail consumers.”

Foot Locker CEO Mary Dillon called the agreement a strategic opportunity to scale the company’s influence in sneaker culture and to offer shareholders both flexibility and value. Shareholders will have the option to receive either $24.00 in cash or 0.1168 shares of Dick’s Sporting Goods stock for each Foot Locker share.

The boards of directors for both companies have unanimously approved the transaction. Final approval now rests with Foot Locker shareholders.

The deal comes amid ongoing economic uncertainty and shifting global trade dynamics, including recent adjustments to US-China tariffs. Executives acknowledged that future outcomes may be shaped by factors such as supply chain constraints, international trade policies, and fluctuations in product availability and pricing.

Goldman Sachs is serving as financial advisor to Dick’s Sporting Goods, while Evercore is advising Foot Locker.