Dick’s Sporting Goods plans to acquire the struggling footwear chain Foot Locker for approximately $2.4 billion. The acquisition is seen as a strategic move to enhance Dick’s presence in the sports retail market.
On Thursday, Dick’s announced its intention to operate Foot Locker as an independent business entity, preserving its well-known brands such as Kids Foot Locker, Champs Sports, and WSS. This acquisition aims to leverage the strong influence of sports and athletic culture to create a new global platform that caters to the evolving needs of consumers.
Foot Locker embarked on a transformation plan in 2023, partly to improve relations with major brands. CEO Mary Dillon highlighted collaborations with Nike in basketball, athletic footwear culture, and children’s products at a recent retail industry conference.
Amid escalating concerns in the retail industry over trade tensions between the US and countries like China, major sportswear manufacturers have allocated significant investments in Asian production. This acquisition comes at a time when companies are adapting to shifting market dynamics and consumer preferences.
Stock prices in the sports equipment and footwear manufacturing industry have been under pressure this year. Foot Locker’s stock plummeted by 41% in 2025, as the company faced competitive challenges from industry giants like Nike and Adidas adjusting their sales strategies.
This marks the second major acquisition of a footwear company in the US within two weeks. Earlier this month, Skechers announced a takeover by 3G Capital investment firm for over $9 billion. The footwear industry continues to witness consolidation amid changing market conditions.
According to the American Apparel & Footwear Association (AAFA), approximately 97% of clothing and footwear products purchased by Americans are imported, mainly from Asian countries. While offshore manufacturing has helped maintain lower labor costs for US companies, it poses challenges in absorbing increased costs due to new tariffs.
Headquartered in New York City, Foot Locker offers Dick’s numerous growth opportunities, including its extensive retail footprint spanning North America, Europe, Asia, Australia, and New Zealand. The acquisition is poised to establish Dick’s foothold in international markets for the first time.
With about 2,400 retail stores in 20 countries across North America, Europe, Asia, Australia, and New Zealand, and franchise operations in Europe, the Middle East, and Asia, Foot Locker generated $8 billion in global sales last year. Analyst Jonathan Matuszewski from Jefferies projects that Dick’s international sales could increase by approximately 12% post-merger with Foot Locker.
The transaction is expected to be finalized in the latter half of this year, subject to approval from Foot Locker shareholders. Fans of athletic footwear collections eagerly anticipate the new products that Foot Locker under Dick’s ownership will bring to the market.
This acquisition signifies a significant step for Dick’s Sporting Goods as it expands its global presence and diversifies its product offerings, in line with the evolving consumer demands in the sports retail sector.