Dick’s Sporting Goods is set to acquire Foot Locker for $2.4 billion with goal of expanding Foot Locker’s global outreach.

As NPR reported, Dick’s Sporting Goods is expecting to see significant growth by acquiring Foot Locker. Executive chairman Ed Stack said Foot Locker’s “cultural significance” in particular will make a strong impact on the retail chain.

“We believe there is meaningful opportunity for growth ahead,” Stack said in a statement, per NPR. “Together, we will leverage the complementary strengths of both organizations to better serve the broad and evolving needs of global sports retail consumers.”

What is Dick’s Sporting Goods saying about acquiring Foot Locker?

While investors have some skepticism about the merger, Stack said the companies feel “highly confident” and they are “up for the job.”

“We’re pretty conservative. We don’t have a lot of big egos here,” Stack told CNBC. “If we didn’t see this clear line of sight to this, or we thought that this was going to impact what we’re able to do with Dick’s, we wouldn’t be doing it.”

What is the current financial state of Dick’s Sports Goods and Foot Locker?

While Foot Locker has seen a decline in sales in the first quarter of the year, Dick’s is trending in the opposite direction. Foot Locker, which reported that sales are down 2.6% from last year’s final period, is projecting a net loss of $363 million in the first part of 2025, according to CNBC. Meanwhile, Dick’s has seen an increase of 4.5% in sales in recent months.

Dick’s CEO Lauren Hobart said the company’s growth has made it possible to purchase Foot Locker.

“We are very pleased with our strong start to the year and our demonstrated sustained growth,” Hobart told CNBC. “The strength of our business puts us in a great position for our proposed acquisition of Foot Locker — a transformative step to accelerate our global reach and drive significant value for our athletes, teammates, partners and shareholders.”

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