Questions still remain one month after Dick’s Sporting Goods completed its $2.4 billion acquisition of Foot Locker.
And market watchers will have to wait a little bit longer to get some answers.
As Dick’s executive chairman Ed Stack said during the company’s second quarter earnings call in August, a full picture of its plans for Foot Locker will not be disclosed until its third quarter earnings call next month. Stack added at a recent conference that Wall Street should expect details on the expectations for Foot Locker on the company’s fourth quarter earnings call in March 2026.
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As for what we do know, the company said in September that it will now operate more than 3,200 stores plus e-commerce and digital businesses across 20 countries in North America, Europe, Asia, and Australia, plus a licensed store presence in Europe, the Middle East and Asia.
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Dick’s also noted that it will continue to operate Foot Locker’s portfolio of brands, including Foot Locker, Kids Foot Locker, Champs Sports, WSS, and Atmos, under a new leadership team.
Stack will lead the global Foot Locker businesses, in partnership with two new presidents, one for North America and one for international. For North America, Dick’s has named the controversial former Nike executive Ann Freeman as president of the North America. As for its international business, Dick’s said it has yet to officially name a president for the division.
By banner, Tony Aversa will serve as senior vice president and general manager of Foot Locker and Kids Foot Locker North America, while Denise Karkos will serve as senior vice president and general manager of Champs Sports. No leadership changes were noted at WSS and Atmos at the time.
These executive changes also meant that Mary Dillon, chief executive officer of Foot Locker, and Franklin Bracken, who was just promoted to president of Foot Locker in March, have exited the company.
Looking ahead to November’s Q3 earnings report, here are the top three remaining questions Dick’s should address on the future of Foot Locker and the integration of the two massive sports retailers.
Will Foot Locker still move its headquarters to Florida?
In August 2024, Foot Locker announced its intention to make the move its global headquarters to St. Petersburg, Fla. in 2025 while maintaining a smaller presence in its current New York City office. At the time, Foot Locker said the move would help to cut costs and drive collaboration among teams in a location where many employees are already based. (Champs is already headquartered in St. Pete.)
In March, it looked like the move was one step closer to happening when national real estate investment firm The Feil Organization disclosed that the sneaker retailer had signed a long-term office lease for a 110,998-square-foot space in St. Pete.
But since Dick’s Sporting Goods is based in Pittsburgh, some think the move to Florida does not seem likely. According to Williams Trading analyst Sam Poser, his checks indicate that Foot Locker’s merchant team will remain in NYC and not move to St. Petersburg. “Dick’s has not confirmed our check,” Poser wrote in a note last month. “Keeping the Foot Locker team in NYC is best, in our view, for talent acquisition, and having close contact with core streetwear and fashion sneaker consumers.”
Will Dick’s continue to operate Foot Locker’s full portfolio of store banners?
While Dick’s confirmed that it will operate Foot Locker’s portfolio of store brands, some analysts are skeptical that it will remain that way for long. In an Aug. 27 note, Poser wrote that Williams Trading “would not be surprised” if Dick’s chooses to sell WSS, and shutdown Champs.
In a later note last month, the analyst noted that Champs “may not be long as a going concern under Dick’s ownership. Poser cited the appointment of Karkos as SVP and GM of Champs Sports as to why Champs may not be a focus for the company. “Karkos’ lack of footwear, apparel, and store experience lead us to believe that she is leading Champs, which has been a distraction to Foot Locker (in our view), until it is no longer a distraction,” Poser wrote.
With the integration of the businesses, when will layoffs be revealed?
During the acquisition process, Dick’s touted that the combined companies would generate approximately $100 million to $125 million of cost synergies once the deal is closed, which will be realized in the medium term. Some of the savings are bound to come from duplicate costs like technology and human resources, distribution center efficiencies and better terms from vendors. This leads to the question, “Will there be layoffs?”
TD Cowen’s John Kernan placed a “Hold” on shares of Dick’s last month, citing uncertainty on Foot Locker’s turnaround. With cost and procurement synergies in the works, he expects that headcount reductions and store rationalization are a possibility.
But while layoffs remain to be seen, there will inevitably be a “simplification” of staffing and organizational structure, similar to the recent moves done by Adidas, Nike and Puma this year.