Foot Locker Soars 83% as Dick’s Sporting Goods Strikes $2.4 Billion Acquisition Deal

Key Highlights:

• Dick’s to acquire Foot Locker at $24 per share, a 66%–90% premium
• Foot Locker stock jumps over 80% on announcement
• Merger expected to boost EPS for Dick’s and deliver up to $125M in synergies

Wall Street just laced up for a surprise sprint, and Foot Locker (NYSE: FL) is leading the pack.

Shares of the athletic retailer skyrocketed more than 83% to $23.59 on Thursday morning after Dick’s Sporting Goods (NYSE: DKS) announced a definitive agreement to acquire Foot Locker in a blockbuster $2.4 billion deal. The offer values Foot Locker at $24 per share, representing a 66% premium to its 60-day volume-weighted average, and nearly 90% above Wednesday’s close.

Under the terms of the deal, Foot Locker shareholders can elect to receive either $24 in cash or 0.1168 shares of Dick’s stock for each share held. The transaction is expected to close in the second half of 2025, subject to shareholder and regulatory approval.

The strategic merger brings together two iconic names in U.S. sports retail and is set to reshape the competitive landscape. Dick’s anticipates $100 million to $125 million in cost synergies through better procurement and sourcing practices. The deal is also expected to be accretive to EPS within the first full fiscal year post-close.

Foot Locker CEO Mary Dillon said the partnership will help “expand sneaker culture, elevate omnichannel experiences, and strengthen brand partnerships,” while Dick’s Executive Chairman Ed Stack sees “a clear path to unlocking growth” through operational integration.

While Foot Locker’s Q1 outlook included a 2.6% drop in comparable sales and an expected adjusted loss of $0.07 per share, the deal may now offer a lifeline. The company was hit by impairment charges of $276 million, including write-downs in tradename and goodwill, and a $124 million tax-related hit in Europe.

For Dick’s, the merger complements its $1.69 billion cash position and bolsters its foothold in athletic retail just ahead of a Q1 earnings report on May 28, 2025, where it expects 4.5% comparable sales growth and adjusted EPS of $3.37, above consensus.

What’s Next?
Investors now turn their eyes to the integration roadmap and regulatory clearance. If successful, the deal could mark one of the most transformational moves in the U.S. sporting goods sector in recent years.