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Dick’s Sporting Goods is purchasing Foot Locker (FL-4.46%) for roughly $2.4 billion, giving the former a global reach for the first time.
Foot Locker’s website says that it operates approximately 2,400 retail stores in 26 countries across North America, Europe, Asia, Australia, and New Zealand, and has a licensed store presence in Europe, the Middle East and Asia. Meanwhile, Dick’s Sporting Goods does not have any stores outside North America, but operates approximately 700 stores in the United States.
While Foot Locker stores are almost all in malls, Dick’s tend to be “big box” stores anchoring strip centers. Dick’s plans to keep Foot Locker an independent brand in the retailer’s portfolio, which also includes Golf Galaxy (DKS-3.06%).
The acquisition comes amid a turnaround effort by Foot Locker CEO Mary Dillon, who joined the athletic shoe retailer from Ulta Beauty (ULTA-0.04%) in 2022.
Dick’s Sporting Goods stock dropped 13% in Thursday morning trading as shareholders digested taking on the sometimes struggling chain. Foot Locker stock skyrocketed 82%.
Executives at Dick’s waved off investor concerns.
“We believe there is meaningful opportunity for growth ahead,” Ed Stack, executive chairman for Dick’s, told CNN. “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”
The purchase comes against the backdrop of President Trump’s on-again, off-again tariff threats, which have snarled supply chains and left vendors scrambling.
Roughly 99% of footwear sold in the US is imported from China and Vietnam, according to the Footwear Distributors and Retailers of America. Both countries have been the target of Trump tariffs.