DICK’S Sporting Goods, Inc. (NYSE: DKS), a prominent U.S.-based omni-channel sporting goods retailer, has entered into a definitive merger agreement to acquire Foot Locker, Inc. (NYSE: FL), a renowned footwear and apparel retailer. This transaction values Foot Locker at approximately $2.4 billion in equity and $2.5 billion in enterprise value.
Foot Locker, a leader in sneaker culture, boasts an impressive portfolio of brands such as Foot Locker, Kids Foot Locker, Champs Sports, WSS, and atmos. Operating around 2,400 retail stores across 20 countries, including North America, Europe, Asia, Australia, and New Zealand, it also has a strong licensed store presence in Europe, the Middle East, and Asia. In 2024, Foot Locker recorded global sales of $8 billion. Following the acquisition, DICK’S plans to maintain Foot Locker as a standalone business unit while preserving its distinct brand identity.
“We have long admired the cultural significance and brand equity that Foot Locker and its dedicated Stripers have built within the communities they serve,” said Ed Stack, Executive Chairman of DICK’S. “We believe there is meaningful opportunity for growth ahead. 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. Together, we will leverage the complementary strengths of both organizations to better serve the broad and evolving needs of global sports retail consumers.”
Lauren Hobart, President and CEO of DICK’S, emphasized the shared vision for growth, stating, “We look forward to welcoming Foot Locker’s talented team and building upon their expertise and passion for their business, which we intend to honor and amplify together. Sports and sports culture continue to be incredibly powerful, and with this acquisition, we’ll create a new global platform that serves those ever-evolving needs through iconic concepts consumers know and love, enhanced store designs and omnichannel experiences, as well as a product mix that appeals to our different customer bases.”
Reflecting on the merger, Mary Dillon, CEO of Foot Locker, shared her optimism, saying, “Today’s announcement marks the start of an exciting new chapter for Foot Locker and is a testament to our team’s hard work and dedication to our mission. By joining forces with DICK’S, Foot Locker will be even better positioned to expand sneaker culture, elevate the omnichannel experience for our customers and brand partners, and enhance our position in the industry. 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. I am proud of all that our teams around the world, including our Stripers, have accomplished to reach this milestone moment, and am confident this transaction represents the best path for our shareholders and other stakeholders.”
This acquisition marks a major milestone for DICK’S, delivering substantial strategic and financial advantages:
- Establishing a global platform in the growing sports retail sector: The merger positions the combined company to expand its addressable market globally, leveraging Foot Locker’s international footprint and real estate portfolio to enter new U.S. markets and extend operations globally for the first time.
- Reaching a broader consumer base: By combining DICK’S House of Sport and Foot Locker’s Reimagined Concept stores, the merger will serve a diverse range of consumers, from performance-driven athletes to sneaker enthusiasts, offering unique and immersive shopping experiences.
- Strengthening brand partnerships through global reach: The combined entity will provide a robust platform for established and emerging brands to connect with athletes and expand their visibility internationally.
- Driving future growth via omnichannel innovation: With a strong history of growth, DICK’S plans to invest in Foot Locker’s brand and incorporate innovative store concepts and digital platforms to achieve sustainable long-term profitability.
This merger not only underscores DICK’S commitment to expanding its global footprint but also aligns with the evolving needs of the modern sports retail market, setting the stage for long-term success.
