Dick sports equipment set to win foot lockers with the goal of dominating sports retail
As President Trump adjusts tariffs, Dick’s objective is to leverage the presence of the footlocker market to serve a wider global audience in sports retail.
Scripps News
Dick’s sports equipment (NYSE: dks) I agreed to get a foot locker (NYSE: FL) At $2.5 billion, this is a significant premium to the target current trading price.
As a result, Footlocker stocks are jumping, increasing by 83% as of 10:15am, while Dick is down by about 15%.
Two big names in sports shoes
Dick and Footlocker are two of the biggest athletic footwear retailers. Both stocks have been hit hard by tariffs and trade wars, with Dick’s stock having dropped by about 20% in 2025 so far before this announcement, with Footlocker stock being cut in half.
Terms and Conditions The Footlocker Holder is asking you to receive either $24 in cash or 0.1168 shares of Dick’s common stock in exchange for each share they hold. The cash offer represents a 66% premium against the weighted average price of 60 trade days for footlockers.
Dick officials said the combination will create a global platform and widen exposure to shoe enthusiasts.
“We have long admired the cultural significance and brand equity that footlockers and their dedicated stripers have built within the communities they serve,” Dick Chairman Ed Stack said in a statement. “By applying operations expertise to this iconic business, we see a clear pathway to unlocking the lock on growth and strengthening the footlocker position in the industry.”
Dick or Foot Locker: Which stock should I buy?
The deal is expected to close before the end of the year, and given the premium, footlocker investors should not anticipate a bid war. A footlocker race may be running and investors will have to decide whether to hold and earn Dick’s stock or cash out and see elsewhere.
Dick has been a top operator for years and the company hopes that this transaction will contribute to revenue for the first year after the end. Acquisitions create risk, and investors are naturally skittish given the operating environment, but if management can quickly obtain this integration, there will be many opportunities for the company in the future.
For long-term investors, Dick’s stock is worth considering.
Lou Whiteman has a position in the foot locker. Motley Fool recommends foot lockers. Motley Fools have a disclosure policy.
The Motley Fool is a partner at USA Today, providing financial news, analysis and commentary designed to help people control their financial lives. The content is produced independently of USA Today.
Should I invest $1,000 in a foot locker now?
A miscellaneous fool’s offer: Consider this before purchasing stock at Foot Lockers.
Motley Fool Stock Advisor The analyst team has identified what investors believe to be the 10 best stocks to buy now…and the footlocker wasn’t one of them. The 10 stocks that have made the cut could potentially generate monster returns over the next few years.
Consider when this list created this list on December 17th, 2004… If you invest $1,000 in the recommendations, then $620,719! * Or when you make this list nvidiaMade on April 15, 2005… If you invest $1,000 at the time of recommendation, you’ll have $829,511.! *
Now it’s worth notingStock AdvisorThe total average revenue of 962% – outperformance that breaks the market compared to170%For the S&P 500. Don’t miss out on the latest Top 10 list that you can use when participatingStock Advisor.
View 10 shares »
