8:26 ET - Dick's Sporting Goods' deal for Foot Locker makes strategic sense for the company in that it would continue to significantly increase their buying power in the market, says D.A. Davidson's Michael Baker in a research note following reports about the deal. The sporting-goods retailer on Thursday confirmed it will acquire Foot Locker in a deal worth $2.4 billion. Baker in his note said the deal makes sense for improving Dick's buying power as the balance of power in sporting goods has moved away from the brands and more towards the retailer. He estimates that Foot Locker and Dick's account for 18.1% and 17.5%, respectively, of Nike's annual North America wholesale business each, so combined they would account for about 36%. In pre-market trading, shares of Dick's slide 11% to $187, while Foot Locker soars 83% to $23.53. (denny.jacob@wsj.com; @pennedbyden)
(END) Dow Jones Newswires
May 15, 2025 08:26 ET (12:26 GMT)
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