Dick’s Sporting Goods and Foot Locker are officially one company.
On Monday, Dick’s announced it had completed the $2.4 billion acquisition of Foot Locker. As a combined company, Dick’s 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.
The transaction is expected to deliver between $100 million to $125 million in cost synergies in the medium term, primarily through procurement and direct sourcing efficiencies, and Dick’s anticipates the transaction to be accretive to earnings per share in fiscal year 2026.
You May Also Like
Related Stories
But the company did add on Monday that it will continue to operate Foot Locker’s portfolio of brands, including Foot Locker, Kids Foot Locker, Champs Sports, WSS, and Atmos, under an new leadership team.
As such, Dick’s executive chairman, Ed 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 former longtime Nike executive Ann Freeman as president of the North America. Freeman spent 26 years at the Swoosh, with her most recent role served being vice president and general manager of North America.
The executive pick is a bit controversial given Freeman’s past at Nike. In 2021, Freeman, previously known as Ann Hebert, resigned from her role at Nike a few days after Bloomberg Businessweek released a cover story featuring Hebert’s then 19-year-old son, Joe, who ran a sneaker resale business called West Coast Streetwear. Joe’s experience building the company was detailed in the piece, which examined how young entrepreneurs are capitalizing on the resale boom.
The story discovered that Joe was reselling shoes that were being purchased, in some cases, according to Bloomberg Businessweek, with Ann’s American Express corporate card. Some of the shoes being resold were purchased at Nike’s employee store in Beaverton, Ore., and at other Nike stores using the family discount, according to the story.
But since this controversy, Freeman has gone on to serve on Allbirds’ board of directors since 2022.
In a statement on Monday, Freeman said that she is “thrilled” to join and lead Foot Locker North America at a “transformative” moment.
“Together, we have an extraordinary opportunity to build on Foot Locker’s rich heritage and deliver innovative experiences to a variety of footwear consumers – from athletes to sneaker enthusiasts and everyone in between,” Freeman said. “I look forward to working with the talented Foot Locker team as we accelerate growth, enrich our brand partnerships and inspire the next generation of consumers.”
Freeman will be supported by a Foot Locker management team of experienced senior leaders. This includes Tony Aversa, who will serve as senior vice president and general manager of Foot Locker and Kids Foot Locker North America. Denise Karkos will serve as senior vice president and general manager of Champs Sports. George Jenkins is now senior vice president of store operations and customer experience at Foot Locker North America.
Peter Scaturro is now senior vice president and chief financial officer of Foot Locker North America. Steve Miller is now senior vice president and chief operating officer of Foot Locker North America. Brett O’Brien is senior vice president and chief marketing officer of Foot Locker North America. And Michael Keinath is senior vice president and chief people officer of Foot Locker North America.
As for its international business, Dick’s said it has yet to officially name a president for the division.
With these moves Mary Dillon, chief executive officer of Foot Locker, and Franklin Bracken, president of Foot Locker, have exited the company.
“We are very enthusiastic about the future of Foot Locker,” Stack said in a statement. “The world class team we have assembled is committed to returning Foot Locker to its rightful place in our industry. We are committed to investing in and growing Foot Locker through its strong culture, led by the Stripers, and creating a more powerful experience for consumers.”
Lauren Hobart, president and chief executive officer of Dick’s added that she is “excited to welcome the Foot Locker team into the company.
“Bringing together the strengths of both companies will help us return Foot Locker to growth while continuing to fuel Dick’s momentum,” Hobart said. “As a combined company, Dick’s and Foot Locker will create a global platform that will redefine the sports retail industry and unlock value for both companies, our brand partners, our teammates, our communities and our shareholders.”