Dick’s Sporting Goods has outlived many of its direct competitors over the last few decades, and the retailer’s run of dominance is set to continue on a new frontier. Footwear of all kinds has been a driving force behind Dick’s success, and the sneaker business is extremely lucrative.
With an eye on a new set of consumers, Dick’s has completed a major acquisition in the footwear and apparel space.
The company has acquired a beloved legacy brand that should be familiar to shoppers around the country, and one that could earn its parent company more streams of revenue and profit.
A Sporting Goods Giant Grows Larger
According to Reuters, Dick’s has completed a $2.4 billion acquisition of Foot Locker, one of its main competitors in the athletic footwear market. In a press release, the company said that after the acquisition, it is “now positioned to become a global leader in the sports retail industry at the intersection of sport and culture.”
Dick’s says that it will operate a total of 3,200 stores in addition to its online and e-commerce options, and that those physical locations will serve customers in over 20 countries. The company believes expansion will allow it to offer “broader reach and enhanced visibility” for certain brands.
Back in May, Dick’s said that it would continue to operate Foot Locker as a standalone business after the acquisition was approved. On Monday, the company stood firm on that promise, announcing that Foot Locker, Kids Foot Locker, Champs Sports and more will remain as their own individual brands.
The leadership structure within the companies is set to change, reflecting the acquisition. Executive Chairman Ed Stack will lead Foot Locker, along with two new presidents – one for the North American market and another for the international market.
Former Nike executive Ann Freeman will work as president of Foot Locker’s North American division, and the company will appoint the second president for international markets at a later time.
Acquisition Could Produce Immediate Benefits
“We are very enthusiastic about the future of Foot Locker,” Stack said.
“The world class team we have assembled is committed to returning Foot Locker to its rightful place in our industry. We are committed to investing in and growing Foot Locker through its strong culture, led by the Stripers, and creating a more powerful experience for consumers.”
Freeman referred to the acquisition as a “transformative moment,” and said that she is excited to work with the rest of the team to “accelerate growth, enrich our brand partnerships and inspire the next generation of consumers.”
Dick’s plans to add Foot Locker’s additional revenue to its its earnings per share in fiscal 2026, an amount it estimates will be between $100 million to $125 million, excluding transaction-related fees.
Dick’s adds Foot Locker and its assorted brands to its portfolio of stores, which also includes Golf Galaxy and Public Lands.
