Dick’s Goes Big: Dick’s Sporting Goods Upbeat pre-Q1, Foot Locker Stock Soars 80% After Takeover

Quick overview

Dick’s Sporting Goods is making a dramatic bid to gain market supremacy with a multibillion-dollar acquisition of Foot Locker, just days before a major earnings report.

Dick’s Sporting Goods Acquires Foot Locker in $2.4 Billion Deal

In a major shakeup in the retail sportswear sector, Dick’s Sporting Goods has officially acquired Foot Locker for approximately $2.4 billion, confirming earlier reporting by The Wall Street Journal. The deal, unveiled Thursday morning, is poised to expand Dick’s global customer base and reinforce its dominance in the athletic retail landscape.

The acquisition values Foot Locker at $24 per share—a staggering 100% premium over its previous day’s closing price of $12.87. Investors responded swiftly, sending Foot Locker’s shares soaring by 65% on the news. The move underscores Dick’s strategic shift to consolidate the market and offer more value across performance footwear and apparel categories.

Key Earnings on Deck for Dick’s

The news comes just before Dick’s Sporting Goods (NYSE: DKS) is scheduled to report earnings on Wednesday, ahead of the U.S. market open. The results will reflect the fiscal quarter ending April 2025. Preliminary guidance has already been issued by the company, showing a projected 4.5% rise in comparable sales, outpacing analysts’ expectations of 2.1%.

Earnings per share (EPS) are expected to come in at $3.24 (adjusted to $3.37), which not only beats the $3.30 from the same quarter last year but also surpasses the Zacks Consensus Estimate of $3.21. Two analyst estimates reviewed by Zacks peg the average EPS prediction at $3.37.

Strategic Vision and Growth Outlook

Dick’s credits its solid market performance to effective strategy execution, omnichannel expansion, and brand strength, with a strong emphasis on enhancing customer experience, especially among athletes. The acquisition of Foot Locker is expected to bolster these efforts, giving Dick’s access to Foot Locker’s international network and customer base.

Management remains optimistic about 2025, calling the early momentum a foundation for sustained, long-term growth. By absorbing Foot Locker, Dick’s gains not only market share but also a broader platform to compete more aggressively against Nike’s direct-to-consumer push and rivals like Academy Sports and Lululemon.

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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