Foot Locker Sparks Retail Optimism As Stock Soars On Report Of $2.3B Buyout By Dick's Sporting Goods

Foot Locker (FL) shares surged nearly 70% after the closing bell on Wednesday after a report said the shoe retailer is close to being acquired by Dick's Sporting Goods (DKS).

The Wall Street Journal reported that Dick's has made a bid of $24 per share, valuing Foot Locker at roughly $2.3 billion. The deal could be announced as soon as this week.

Foot Locker shares were last trading at $21.79. Dick's shares were down 5.5% to $198. Both tickers were among the top 20 trending stocks on Stocktwits. 

The potential deal comes after Foot Locker, a multi-brand retailer that sells Nike, Adidas, and Vans, among other shoes, witnessed a sharp slide in the company's share price this year.

Retailers, including shoe companies, have faced pressure after President Donald Trump announced sweeping tariffs last month. Although some of those tariffs have been paused, and the U.S. is working on trade deals with several countries, Foot Lockers stock remains down 40% year to date.

The retailer had anticipated lower sales for the year, attributing the decline to tariffs and recent pricing adjustments made by Nike as part of its strategy to boost its own sales.

The potential deal would be the largest for Dick's, the country's biggest sporting goods company, which sells equipment, apparel, and footwear.

Last week, Skechers agreed to be bought over by private equity firm 3G Capital for $9.4 billion, in what is being hailed as one of the biggest deals in the footwear sector.

On Stocktwits, sentiment for Dick's was 'extremely bullish'. Sentiment for Foot Locker jumped to 'extremely bullish' from 'bearish' the previous day.

Users were positive about the deal going through, with one saying that investors who buy Foot Locker call options will be “very rich.”

Meanhwile, a user criticized Dick's strategy, suggesting it is prioritizing acquiring more mall space over winning customers with competitive pricing.

Dick's stock is down 8.4% year to date, as of its last close.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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