Dick’s Sporting Goods shares tumble as analysts question Foot Locker deal, note past failed retail mergers

‘There’s a far longer list of retail mergers that were not successful than those that were,’ UBS analysts say

Last Updated: May 15, 2025 at 6:15 p.m. ET
First Published: May 14, 2025 at 6:28 p.m. ET

Shares of athletic-gear retail chains Dick’s Sporting Goods Inc. and Foot Locker Inc. tore in opposite directions on Thursday after the former struck a $2.5 billion deal to buy the latter, prompting analysts to question the benefits and the risks.

Foot Locker’s FL stock launched 86% higher on Thursday, its biggest percentage gain on record. Shares of Dick’s DKS, meanwhile, slid 14.6% — their biggest percentage drop since Aug. 22, 2023, when they fell 24.15%.