Dick's Sporting Goods Faces Uncertainty Ahead of Foot Locker Acquisition Deal.

Dick's Sporting Goods (DKS) shares edged higher despite analyst John Kernan keeping a Hold rating due to unknown risks associated with the Foot Locker (FL) deal. Kernan hiked the price target from $205 to $231, citing $100-125 million in cost and procurement synergies, potential headcount reductions, and store rationalization. Senator Elizabeth Warren has called on the FTC and DOJ to block the deal, citing potential job losses, price hikes, and reduced competition. The deal is expected to close in H2 2022.

Dick's Sporting Goods (DKS) shares edged higher on July 2, 2025, despite analyst John Kernan maintaining a Hold rating due to unknown risks associated with the Foot Locker (FL) deal. Kernan increased the price target from $205 to $231, citing potential cost and procurement synergies of $100-125 million, potential headcount reductions, and store rationalization [1].

Senator Elizabeth Warren has called on the Federal Trade Commission (FTC) and Department of Justice (DOJ) to block the deal, citing potential job losses, price hikes, and reduced competition. The deal is expected to close in the second half of 2022 [2].

Glenview Capital Management, led by billionaire Larry Robbins, recently disclosed significant changes in its investment portfolio, taking new stakes in Dick's Sporting Goods, Thermo Fisher, and Surgery Partners in the second quarter of 2025, while exiting its position in Disney [3]. The fund increased its stake in Dick's Sporting Goods by 1.05 million shares, indicating confidence in the company's growth prospects [3].

The acquisition of Foot Locker by Dick's Sporting Goods is expected to expand footwear to about half of Dick's sales post-acquisition, up from 28% in 2024. The deal should further increase its importance to vendors, particularly Nike, which accounted for 59% of Foot Locker’s sales last year [3].

The deal has drawn scrutiny from antitrust regulators, with concerns raised about potential job losses, price hikes, and reduced competition. However, some argue that the deal could create a more competitive platform capable of competing with global athletic brands [3].

Investors will be closely watching the performance of Dick's Sporting Goods and the outcome of the antitrust review of the Foot Locker deal. As the second-quarter earnings season winds down, investors will be closely watching the performance of companies like NVIDIA (NVDA), which is scheduled to report on August 27. The earnings season has been marked by strong performance, with 81% of S&P 500 companies reporting earnings above consensus estimates [1].

References:
[1] https://www.forbes.com/sites/bill_stone/2025/08/10/second-quarter-earnings-season-waiting-for-nvidia/
[2] https://seekingalpha.com/news/4485807-glenview-capitals-q2-moves-include-new-stakes-in-dicks-sporting-disney-exit
[3] https://retailwire.com/discussion/dicks-foot-locker-antitrust-concerns/