• by Sarah Mahoney , May 15, 2025

Dick’s Sporting Goods is acquiring rival Foot Locker in a $2.4 billion deal that would dramatically expand its global reach and sneaker presence, although observers are split on how well the move will pay off.

The acquisition would add Foot Locker’s 2,400 stores across 20 countries to Dick’s portfolio, giving it its first significant international presence. It also brings in niche banners like Kids Foot Locker and Champs Sports, allowing Dick’s to connect with a broader consumer base, from sneaker-obsessed collectors to more traditional performance athletes.

Foot Locker will continue to operate as a standalone brand. Still, the combined companies would wield more influence with key vendors, including Nike and Under Armour, and potentially improve back-end operations. Dick’s more advanced tech infrastructure and loyalty capabilities could help Foot Locker regain momentum.

“Internal missteps and a more-challenged sector and macro-backdrop have weighed meaningfully upon operations at Foot Locker lately,” writes Brian Nagel, an analyst at Oppenheimer. “Dick’s now enjoys a much better developed tech backbone and ability to track and cater to core consumers. Together, the brands should capitalize well upon forthcoming, reinvigorated product innovation.”

But others are less optimistic. In a report cited by Dow Jones, TD Cowen analyst John Kernan downgraded Dick’s to “hold” following the announcement, citing heightened exposure to Nike as a concern. If approved, the deal would mean Nike merchandise accounts for 38% of inventory purchases, up from 24%. He also warned the combined retailer may struggle to keep pace with smaller, more agile sneaker players and marketplaces that are steadily gaining share.

Dick’s, based in Pittsburgh, continues to perform well in a shaky retail environment. And the House of Sport superstore concept is building sales momentum, as people respond to the highly experiential retail model. Dick’s recently reported a 4.5% increase in comparable-store sales for the first quarter, ahead of its upcoming earnings release.

“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, in the announcement. “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.”