By Sabrina Lynch
- Dick’s Sporting Goods plans to dominate the sportswear market by acquiring Foot Locker in a $2.4B deal
- The global sportswear market is projected to reach $558.14 billion by 2032
Iconic sports goods retailer Dick’s Sporting Goods (DKS +0.21%) has announced plans to acquire its market rival Foot Locker (FL +0.11%) in a $2.4 billion deal as it seeks to expand its global footprint. It’s an ambitious move that certainly boosts Foot Locker’s profile in the market as well as giving Nike healthy competition from Dick’s revenue that’s already doing exceptionally well. In quarter 1 of the financial year 2025, revenue sales are already up 5.2%.
Why This Matters: The acquisition helps Dick’s gain a customer base it didn’t have before, particularly on an international scale. The agreement will see Dick’s absorb Foot Locker’s 2,400 stores across 20 countries, giving the latter’s shareholders the opportunity to receive $24 in cash (which equates to 0.1168 shares of Dick’s stock). Foot Locker had been making moves to turnaround its sales, but the new world order of higher tariffs and declining consumer spending have impacted the company’s growth.
This is not new news to Dick’s investors who have been keeping a close eye on their own stock value, which decreased by more than 14% in mid May. Yet, there’s no denying the cultural cache Foot Locker carries with younger audiences in contrast to Dick’s prime customer base of older, affluent and suburban shoppers. It’s a merger that will help propel Dick’s standing among the sneakerheads with deep pockets. And with such high expectations, the sneaker market revenue forecast is set to reach $101.7 Billion by 2030.
What’s Next: Dick’s currently holds 8% market share so there’s room to gain traction in a very competitive market. This will be accomplished by the company’s expansion into metropolitan markets and malls where Foot Locker currently operates.
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