Dick’s Bets On Foot Locker To Kick Start Global Growth Across Brands

When Dick’s Sporting Goods announced in May that it would acquire U.S. sports giant Foot Locker for $2.4 billion, it caught the attention of both Wall Street and sneakerheads.

The deal, finalized this week, creates a retail behemoth with more than 3,200 stores across 20 countries and an unlikely coming together of a global brand and Dick’s, which has traditionally been seen as America’s go-to sporting goods chain.

The move represents both an ambitious expansion and a chance to revive Foot Locker, which has struggled to get out of the starting blocks in recent years, despite a series of store-led initiatives.

The timing may prove critical. Foot Locker, still synonymous with sneaker culture and of course basketball, has seen rivals nibble away at its market. Nike is pulling back from wholesale distribution, while younger consumers are finding new ways to buy limited-edition kicks and are increasingly drawn to new brands from the likes of On, with ever more additions like the new footwear range from Gymshark.

As a result, margins have thinned, inventory has piled up, and its heavy reliance on Nike left it exposed to changing brand strategies.

For Dick’s, a retailer that has quietly reinvented itself over the last decade, this acquisition is a bet that it can apply its own formula of disciplined execution, omnichannel capabilities and scale to restore Foot Locker’s edge.

Leadership teams at both companies have been careful to stress continuity. Foot Locker will operate as a standalone business within Dick’s, retaining its brands – Foot Locker, Kids Foot Locker, Champs Sports, WSS, and Atmos. Meantime, the new parent company has already moved leadership talent into place, including former Nike executive Ann Freeman to oversee North America.

Foot Locker To Gain From Dick’s Playbook

Dick’s has also promised at least $100 million in cost savings from procurement and sourcing efficiencies, with analysts predicting the deal will become earnings-accretive as early as 2026.

“We are excited to officially welcome the Foot Locker team,” Dick’s CEO Lauren Hobart said. “Bringing together the strengths of both companies will help us return Foot Locker to growth while continuing to fuel Dick’s momentum. As a combined company, Dick’s and Foot Locker will create a global platform that will redefine the sports retail industry and unlock value.”

The playbook will likely lean heavily on Dick’s successful omnichannel integration, its ability to tailor inventory to local markets, and its sophisticated use of data. While Foot Locker has long leaned on the drop model, Dick’s may help it smooth inventory flows and sharpen its e-commerce offer.

Indeed, while Foot Locker’s strength has always been sneakers, its apparel has lagged. Dick’s, with its broad sporting goods DNA and growing credibility in activewear, could help fill the gap and enable Foot Locker to tap into Dick’s broader ecosystem.

What Foot Locker might bring to Dick’s, which has long been a U.S.-centric chain, is global reach as Foot Locker has stores across Europe, Asia, and Australia. The merger gives Dick’s a ready-made platform overseas through which it could test its own retail concepts in new markets, while also reinforcing Foot Locker’s position outside the U.S.

Foot Locker Hit By Athleisure Rivals

The wider competitive landscape in activewear has shifted dramatically, with one of the most surprising stories the stumble of Lululemon. Once the undisputed star of premium athleisure, Lululemon has endured two consecutive quarters of lowered guidance, weak U.S. demand, and bruising tariff impacts.

Its stock has lost more than half its value this year, while it has faced criticisms for incoherent design choices, overuse of logos, and inventory missteps that left shelves missing core products while discount bins overflowed with the wrong colors.

Trying to stay ahead of the game, for Dick’s the acquisition of Foot Locker also fortifies relationships with Nike and Adidas, which still dominate global footwear sales, and gives Dick’s negotiating leverage.

Dick’s has also invested heavily in creating House of Sport stores that function as destinations, with batting cages, climbing walls and curated apparel zones, while Foot Locker has also been trying to shift toward more immersive store concepts and to cement is positioning as a hub of sneaker culture.

There are risks. Foot Locker has relied heavily on markdowns to move excess stock and it will require discipline to avoid eroding margins further.

Likewise, Lululemon’s poor performance may have created encouragement for more new brands, while discount retailers continue to exert pressure from below, all giving Foot Locker and its new parent Dick’s plenty to think about.