Dick’s Sporting Goods and Foot Locker are one step closer to joining forces. A vast majority of Foot Locker’s shareholders on Friday voted to approve its merger with Dick’s Sporting Goods, which is expected to close Sept. 8.
“The proposed transaction would mean acquiring a structurally challenged, mall-based retailer with 2,410 small-format stores worldwide (~33% of sales are international), a heavy dependence on one brand (~60% of purchases from Nike), and a weak operating margin of 2.5% in 2024 that would be dilutive to Dick’s 11.0% in 2024,” Telsey Advisory Group analysts led by Joe Feldman wrote in a note before the deal was announced.
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