Report: Dick’s Sporting Goods Seeks $2.3 Billion Acquisition of Foot Locker

Dick’s Sporting Goods is reportedly close to reaching a deal to acquire Foot Locker for about $2.3 billion.

The two companies have discussed a deal at that price, and they could finalize a deal as soon as Thursday (May 15), The Wall Street Journal (WSJ) reported Wednesday (May 14), citing unnamed sources.

Neither Dick’s Sporting Goods nor Foot Locker immediately replied to PYMNTS’ request for comment.

Like other retailers, the two companies have been impacted by talk of new U.S. tariffs, according to the WSJ report. Dick’s Sporting Goods’ shares are down 8% this year, while Foot Locker’s shares are down 40%, as of Wednesday’s close, per the report.

In another recent deal in this sector, private equity firm 3G Capital agreed to buy sneaker brand Skechers for $9.4 billion earlier this month, the report said.

Foot Locker reported March 5 that its fourth-quarter sales decreased 5.8% to $2.24 billion, while comparable sales increased 2.6%, the third straight quarter of positive comp sales. For the full fiscal year of 2024, the retailer’s total revenue slipped 2.2% to $7.99 billion.

The retailer also said at the time that its full-year guidance calls for a sales range of 1% to 0.5% and comparable sales to rise 1% to 2.5%.

“Coming out of the holiday we felt really good about the momentum in the business,” Foot Locker President and CEO Mary Dillon said during the company’s quarterly earnings call. “As we came into February, we started to see consumer uncertainty pick up. What we’re seeing is they’re coming to buy when there’s a call to action but are cautious in between.”

Dick’s Sporting Goods said March 11 that its comparable sales increased 6.4% in the fourth quarter, a company record.

The company also forecast sales growth of 1% to 3% for the year.

“We’re coming off a fantastic Q4,” Dick’s Sporting Goods CEO Lauren Hobart said during the company’s quarterly earnings call. “Our guidance merely reflects the fact that there’s so much uncertainty in the world today in the geopolitical environment, macroeconomic environment; we are just being appropriately cautious.”

On May 6, Dick’s Sporting Goods said it led a $120 million strategic investment in youth sports operator Unrivaled Sports through its corporate venture arm, DSG Ventures. The retailer said the investment supports its broader goal to increase access to youth sports.