What's Next For Foot Locker? Analyst Says Dick's Deal Is Timely

Telsey Advisory Group analyst Cristina Fernández reiterated the Market Perform rating on Foot Locker, Inc. FL on Friday, raising the price forecast from $20 to $24.

Foot Locker shares rocketed premarket on Thursday after the company disclosed a definitive deal to be acquired by Dick’s Sporting Goods Inc DKS which values Foot Locker’s equity at around $2.4 billion and its enterprise at about $2.5 billion.

As per the deal, Foot Locker shareholders will have the option to receive either $24 in cash or 0.1168 shares of DICK’S common stock for each share of Foot Locker common stock they own.

Fernández writes that the acquisition is a favorable outcome for Foot Locker shareholders. Why? The acquisition offer is an 86% premium over the prior day’s closing price. The deal also comes at a time when the company’s 2025 outlook has weakened. Recall the company’s disappointing preliminary Q1 results.

Fernández raised the price forecast, aligning with the acquisition offer, and noted that softness seen in February worsened through the quarter, likely due to dampened sentiment following tariff news—reflected in Foot Locker’s preannounced Q1 comp decline of 2.6% and an EPS loss of 7 cents, both missing consensus.

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Fernández revised the 2025 EPS estimate for Foot Locker to $1.20, down from $1.48, below the FactSet consensus of $1.36; alongside a reduced comp forecast of 0.5% versus the earlier 1.5%.

For 2026, the EPS projection was also cut to $1.50 from $1.75, trailing the FactSet estimate of $1.62.

Price Action: FL shares are trading lower by 0.25% to $23.85 at last check Friday.

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