Foot Locker Inc (NYSE:FL) shares are running after the market close on Wednesday following reports that Dick’s Sporting Goods Inc (NYSE:DKS) is nearing a deal to buy the footwear and apparel retailer.
What To Know: Dick’s Sporting Goods is getting close to finalizing a deal to acquire Foot Locker for around $2.3 billion, according to a Wall Street Journal report.
The report indicates that a deal could be completed as soon as Thursday, citing people familiar with the matter.
Discussions have reportedly involved a potential deal at $24 per share, representing a significant premium to Foot Locker’s closing price of $12.88 as of Wednesday’s close.
Foot Locker shares have trended down since the start of the year. Shares sold off in February as markets began to move lower in anticipation of tariffs from the Trump administration. The company also reported mixed financial results in March as sales fell 5.8% year-over-year. Foot Locker guided for continued consumer and category promotional pressures and said it would continue to focus on inventory controls and expense management.
The Wall Street Journal reported that the deal would be the biggest acquisition to date for Dick’s, the nation’s largest sports retail chain. The deal would also expand Dick’s operations outside the U.S.
Dick’s Sporting Goods shares were down about 4.58% at $200, while Foot Locker shares were soaring 68.61% at $21.70 after-hours Wednesday at publication, according to Benzinga Pro.
Foot Locker is due to report first-quarter financial results on May 29. Analysts have been anticipating a loss of four cents per share and revenue of $1.86 billion.
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Photo: C. Nass/Shutterstock.
