What's Next For Foot Locker? Analyst Says Dick's Deal Is Timely

Core Viewpoint - Foot Locker, Inc. is set to be acquired by Dick's Sporting Goods Inc, valuing Foot Locker's equity at approximately $2.4 billion and its enterprise at about $2.5 billion, which is seen as a favorable outcome for shareholders [1][2]. Acquisition Details - Shareholders of Foot Locker will have the option to receive either $24 in cash or 0.1168 shares of Dick's common stock for each share of Foot Locker [2]. - The acquisition offer represents an 86% premium over Foot Locker's closing price prior to the announcement [2]. Financial Outlook - The acquisition comes at a time when Foot Locker's 2025 outlook has weakened, following disappointing preliminary Q1 results [2]. - The company's preannounced Q1 comparable sales declined by 2.6%, and it reported an EPS loss of 7 cents, both missing consensus estimates [3]. - The EPS estimate for 2025 has been revised down to $1.20 from $1.48, which is below the FactSet consensus of $1.36 [3]. - The comparable sales forecast for 2025 has also been reduced to 0.5% from the earlier estimate of 1.5% [3]. Future Projections - For 2026, the EPS projection has been cut to $1.50 from $1.75, trailing the FactSet estimate of $1.62 [4]. - Following the news, Foot Locker shares were trading lower by 0.25% at $23.85 [4].