Dick’s Sporting Goods is acquiring Foot Locker in a $2.4 billion deal, aiming to strengthen its position amidst global market uncertainties influenced by tariffs. This acquisition intends to expand Dick’s international presence while maintaining the Foot Locker brand as a standalone entity. The deal includes continuing operations of Foot Locker’s 2,400 stores across 22 countries. However, risks remain due to declining mall traffic and the impact of tariffs on imported goods, particularly footwear, which largely originates from China and Vietnam. Despite recent improvements, Foot Locker’s sales have faced challenges, with a 5.8% drop in fourth-quarter revenue. Still, the acquisition marks a 66% premium over Foot Locker’s stock price. Dick’s believes this move will unlock growth opportunities and enhance Foot Locker’s market position.
— new from Diario AS
