Dick's Will Acquire Foot Locker, Strengthen Global Presence
Dick’s Sporting Goods has entered into a definitive agreement to acquire Foot Locker for approximately $2.4 billion in equity value.
The merger will create what Dick’s called a “global platform” to serve the evolving needs of sports consumers through innovative marketing, store concepts and omnichannel experiences.
The acquisition marks Dick’s first major foray into international retail, expanding its global footprint and market opportunity, according to a May 15 media release. The transaction is expected to close in the second half of 2025.
Omnichannel Expansion
A key component of the merger is a strategic push to elevate the customer experience across physical and digital channels. Dick’s plans to operate Foot Locker as a standalone business unit, preserving its brand identity while tapping into “complementary strengths” to better serve consumers and brand partners, Ed Stack, executive chairman of Dick’s, said in the release.
About Foot Locker
Foot Locker operates a diverse portfolio of sneaker and apparel retailers, including Foot Locker, Kids Foot Locker, Champs Sports, Atmos as well as WSS, which has a strong connection within Latino communities. It comprises about 2,400 retail stores across 20 countries in North America, Europe, Asia, Australia and New Zealand, and a licensed store presence in Europe, the Middle East and Asia.
In 2024, Foot Locker generated $8 billion in global sales.
The combination brings together Dick’s omnichannel expertise and Foot Locker’s cultural credibility in sneaker and streetwear retailing, per the release. Executives emphasized the opportunity to invest in enhanced store concepts and digital experiences inspired by recent innovations, including Dick’s House of Sport and Foot Locker’s Reimagined store formats.
"We have long admired the cultural significance and brand equity that Foot Locker and its dedicated Stripers have built within the communities they serve," Stack said. "We believe there is a meaningful opportunity for growth ahead."
Lauren Hobart, president and CEO of Dick’s, added that the acquisition allows the combined company to “serve 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.”
Retail Media, Brand Partnership Implications
The merger could also impact retail media opportunities and brand partnerships. With an expanded global footprint, the combined company may become a more attractive partner for CPGs and sports brands seeking immersive activations across multiple touchpoints.
Dick’s believes the merger will enhance its ability to offer brand partners more visibility and storytelling potential across touchpoints, such as interactive in-store displays to targeted digital content. The combined scale and customer data ecosystem could also unlock more opportunities for personalized marketing and loyalty programs.
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Operational Efficiencies, Financial Growth
Dick’s projects the deal to be accretive to earnings per share in the first full fiscal year post close (excluding one-time costs). The company also anticipates $100 to $125 million in medium-term cost synergies, primarily through procurement and sourcing efficiencies.
From a marketing and operations standpoint, the companies expect the integration to enable more agile merchandising strategies, improved inventory alignment and better digital content execution across banners.
Dick’s intends to finance the acquisition through a combination of cash-on-hand and new debt.
Foot Locker CEO Mary Dillon praised the deal as a “milestone moment” that positions the brand to scale sneaker culture and elevate the omnichannel experience.
