Political Hurdles Emerge for Dick’s Sporting Goods’ Landmark Acquisition

While shareholders celebrate the proposed merger between Dick’s Sporting Goods and Foot Locker, a significant political challenge is mounting that could jeopardize the entire deal. The sporting goods retailer is pursuing what could become its most substantial acquisition to date, but the transaction has unexpectedly become a focal point in Washington.

Shareholder Approval Meets Regulatory Scrutiny

Foot Locker’s shareholders have demonstrated overwhelming support for the acquisition, with 99 percent voting in favor of the offer. Under the proposed terms, Foot Locker shareholders would receive either $24 per share or 0.1168 shares of Dick’s stock for each share they own. The companies anticipate finalizing the transaction later this year.

However, the merger faces opposition from U.S. Senator Elizabeth Warren, who is urging the Federal Trade Commission to block the deal. Her primary concern centers on market concentration—the combined entity would control over 15 percent of the U.S. sporting goods market, creating what she considers excessive market power.

Despite these regulatory concerns, both companies remain optimistic about the merger’s prospects. The market has responded favorably to the strategic move, driving Dick’s Sporting Goods’ market capitalization to $18 billion.

Financial Performance and Market Position Strengthen

The company’s fundamental financial metrics remain robust. For the first quarter of 2025, Dick’s reported earnings per share of $3.37 on revenue of $3.16 billion. The company demonstrated strong operational efficiency with a return on equity of 38.06 percent and a net margin of 8.49 percent.

Should investors sell immediately? Or is it worth buying Dick's Sporting Goods?

Market analysts have taken note of the company’s strengthening position. Several research firms have raised their price targets significantly, reflecting confidence in Dick’s market leadership and its ability to gain market share across sportswear, fitness equipment, and outdoor categories.

Analyst Confidence and Upcoming Quarterly Report

Telsey Advisory Group increased its price target from $220 to $255 while maintaining its “Outperform” rating. Analyst Joseph Feldman projects second-quarter EPS of $4.30 and reaffirmed his full-year 2025 estimate of $14.40. Even more conservative firms like Williams Trading and TD Cowen raised their targets, though they maintained “Hold” ratings. The current average price target among analysts stands at $234.50.

All attention now turns to August 28, when Dick’s Sporting Goods will release its second-quarter results. Market expectations include EPS of $4.29 on revenue of $3.6 billion. Strong performance, potentially boosted by merger optimism, could provide additional momentum for the stock.

The ultimate determinant of the merger’s fate, however, may rest not with financial performance but with regulatory approval—making Senator Warren’s opposition the most significant variable in this complex acquisition equation.