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Here's what triggered a 70% surge in shares of this Footwear brand with an India connectionFoot Locker's shares ended Wednesday's regular trading session at $12.87, a drop of over 3%, giving it a market value of $1.2 billion. The Wall Street Journal report stated that the deal with Dick's potentially values the company at $2.3 billion, a near 100% premium.By Hormaz Fatakia   May 15, 2025, 6:16:03 AM IST (Published)2 Min ReadShares of Foot Locker Inc. surged as much as 70% in extended trading on Wednesday, after the Wall Street Journal reported that Dick's Sporting Goods Inc. is in advanced talks to acquire the company.

Foot Locker's shares ended Wednesday's regular trading session at $12.87, a drop of over 3%, giving it a market value of $1.2 billion. The Wall Street Journal report stated that the deal with Dick's potentially values the company at $2.3 billion, a near 100% premium.

At the close of extended trade at 8 PM EST, shares of Foot Locker had surged 69% to $21.78. A final agreement is yet to be reached, the Wall Street Journal reported, citing sources familiar with the matter.

Foot Locker currently has 2,400 stores, mostly made up of smaller locations globally, while Dick's Sporting Goods has over 800 big box stores across US suburban areas. Both companies though, are dependent on sneakers for a bulk of their sales.

Under new CEO Mary Dillon, Foot Locker has looked to boost its sales by renovating a large part of its store networks and also look to enhance its relationship with Nike, who cut back on wholesalers to boost its own retail sales channel.

Foot Locker has a target of $9.5 billion in annual sales by 2026 but revenue for the most recent year, which ended on February 1, fell for the third year in a row to less than $8 billion, as discretionary spending sputters in the US.

Foot Locker also has an India connection courtesy of its partnerships with listed entities like Metro Brands and FSN E-commerce Ventures, parent company of the beauty and fashion e-tailer Nykaa.

During its December quarter earnings call, the Metro Brands management told analysts that they remain conservative in projections of new stores for Foot Locker, given the uncertainties of the BIS regulations. The management said that they have three more stores lined up for launch, having launched the first one in October last year and also having opened the largest Crocs store in Kochi.

“If the purchase goes through, Dick’s would be inheriting a business that remains on the back foot,” said Neil Saunders, managing director at GlobalData. “The comeback is not yet fully in play.”

Shares of Dick's Sporting Goods tumbled 6% in extended trading after the Wall Street Journal newsbreak.

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