Key Stats for Foot Locker Stock
- Today’s Price Change: 69%
- Current Share Price: $22
- 52-Week High: $34
- FL Stock Price Target: $17
What Happened?
Foot Locker (FL) stock rocketed 69% higher after the Wall Street Journal reported that Dick’s Sporting Goods will acquire the struggling sneaker chain for approximately $2.3 billion.
As part of the deal, Foot Locker shareholders will receive either $24 per share in cash or 0.1168 shares of Dick’s common stock for each Foot Locker share they own. This offer represents an 86% premium over Foot Locker’s closing stock price of $12.87 on Wednesday.
The potential takeover comes at a challenging time for Foot Locker stock, which had plummeted 42% over the past 12 months prior to this news.
In its most recent quarterly report, Foot Locker disclosed that Q4 sales decreased 5.7% to $2.24 billion, though comparable sales increased 2.6%, marking the third quarter of positive comp sales.
Dick’s Sporting Goods shares, meanwhile, fell 5.5% following the report.
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What the Market Is Telling Us
The dramatic surge in FL stock indicates investors see this acquisition as a lifeline for the struggling retailer.
The reported $24 per share offer represents a substantial premium over recent trading prices, suggesting Dick’s sees significant untapped value in combining the two businesses despite their different models.
Foot Locker operates 2,400 smaller, mostly urban locations worldwide. At the same time, Dick’s runs approximately 800 big-box stores in U.S. suburbs.
Both companies have faced headwinds from shifting consumer spending patterns and uncertainty around tariffs, particularly those affecting goods manufactured in China. The weekend’s announcement of temporary tariff reductions between the U.S. and China may have helped facilitate the deal timing.
The acquisition would follow another recent significant footwear industry transaction after Skechers’ $9.4 billion take-private deal with 3G Capital earlier this month.
For Dick’s CEO Lauren Hobart, who has focused on improving e-commerce capabilities and store experiences, acquiring Foot Locker could help counter slowing sales growth in recent quarters.
Meanwhile, Foot Locker CEO Mary Dillon’s ambitious turnaround plan targeting $9.5 billion in annual sales by 2026 has struggled to gain traction amid cautious consumer spending.
See Foot Locker’s revenue and earnings estimates for 2025 and beyond >>>
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
