1350 ET - Dick's Sporting Goods deal for Foot Locker is confusing Loop Capital for a number of reasons. "To be blunt, we are scratching our heads... particularly given the uncertain current U.S. macroeconomic environment, a potential U.S./China trade war, and Foot Locker's continued struggles," says managing director Anthony Chukumba. Further puzzling the deal's logic, he adds, is Dick's bullish outlook on its House of Sport and 50,000 square foot next generation store concepts. Chukumba says the only silver linings are the greater leverage Dick's will have with large athletic footwear and apparel manufacturers and the fairly reasonable price--$2.4 billion--it's paying. Dick's Sporting Goods slides 14% to $179.74, while Foot Locker surges 85% to $23.78. (denny.jacob@wsj.com; @pennedbyden)
(END) Dow Jones Newswires
May 15, 2025 13:50 ET (17:50 GMT)
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