Foot Locker soars after massive $2.4 billion takeover bid from Dick’s Sporting Goods
The struggling sneaker chain (finally) got a lifeline — but the deal could face hurdles.
Foot Locker shares sprinted over 80% in early trading after Dick’s Sporting Goods announced a massive $2.4 billion takeover offer. Dick’s said it would pay $24 per share in cash for the sneaker retailer (nearly a 90% premium to recent trading levels) even as Foot Locker has shuttered hundreds of stores amid cooling demand. Dick’s shares fell about 11% on the news.
The footwear industry has been hit hard by tariff uncertainty and shifting shopping habits, especially for mall-based retailers like Foot Locker. The Y2K-era brand has been shuttering stores and struggling to revive its image, even after a splashy rebrand aimed at Gen Z shoppers. Foot Locker missed sales estimates in the latest quarter as Nike, its biggest brand partner, pulled back on wholesale deals.
Together, Dick’s and Foot Locker would operate more than 3,200 stores and bring in over $10 billion in annual revenue, including more than $5 billion from footwear alone. But given Dick’s dominance in the category, analysts warn the move could attract regulatory scrutiny.
