Dick’s Sporting Goods to acquire Foot Locker in $2.4B urban footwear market push

Dick’s Sporting Goods (NYSE: DKS) said in May it would acquire rival Foot Locker (NYSE: FL) in an all-cash deal worth $2.4 billion, as the US retailer seeks to deepen its footprint in urban markets and sharpen its edge in the athletic footwear category. The transaction, subject to regulatory approval, is expected to close in the second half of 2025.

The tie-up would create a sporting goods giant with projected combined revenues of $22 billion and a network of more than 3,100 stores in fiscal 2026, according to Visible Alpha estimates. Dick’s aims to leverage the deal to broaden its customer base, unify loyalty programmes, and enhance its consumer data capabilities.

Foot Locker has struggled in recent years, weighed down by store closures and declining traffic. Analysts expect its revenue to fall -2.3% year-over-year in fiscal 2026, with comparable sales down -0.9%. In contrast, Dick’s is forecast to grow revenue by +3.6% in the same period, with a +2.9% increase in comparable store sales.