The Kicks You Wear, Vol. 423 — The rich get richer
Dicks Sporting Goods is taking over Foot Locker. I can't believe I'm typing that.
Goooood morning, folks! Welcome back to the Kicks You Wear. Thanks so much for rocking with me today. Appreciate you coming through.
I want y’all to know I am still livid that the Dallas Mavericks won the NBA Draft lottery. Nico Harrison does not deserve this. I’m not saying the lottery is rigged, but LeBron said it. And, well, he’s LeBron. So do with that what you will.
Please put in the newspaper that I am angry.
Let’s get to it.
This is really happening
In what might be the footwear industry’s most shocking move of 2025, Dick’s Sporting Goods is in the process of acquiring Foot Locker.
Have you ever seen one of those videos where there’s a small fish that gets eaten by a giant fish? And then that giant fish, somehow, gets eaten by an even bigger fish? That’s kind of how this feels to me.
DSG announced its plan in a call with investors on Thursday. It was first reported by The Wall Street Journal.
The details:
Dick’s is purchasing Foot Locker for $2.4 billion, which is about $24 per share. Honestly, that felt a bit low for a legacy brand like FTL.
That’s about a 66 percent premium on Foot Locker’s stock, which is a fantastic return for investors.
The state of play: I’m not going to lie to y’all. I’m still pretty shellshocked by this move. It came out of nowhere. There was nary a peep about even a potential sale for Foot Locker. Now, suddenly, we’re here.
I think two big factors led us here.
The brand’s performance lately has been lackluster. Sales have been low and expectations weren’t set to rise anytime soon, despite CEO Mary Dillon’s slow-burning Lace Up plan.
We also know that the company expected a significant tariff impact. That’s partially why its forecast was so bleak. Like Skechers, this acquisition is a bit of a Golden Parachute for Foot Locker’s leadership.
But make no mistake about it — this move is huge. Two of the premier wholesale brands in footwear and sportswear are merging into one. We don’t see this happen on this sort of scale.
Yes, but: The move makes sense from a business standpoint.
Dicks has a hold on the functional sportswear space that Foot Locker just never will. The company specializes in sports equipment, particularly in golf. It also has a grip on Gen Z and Gen Alpha that other brands can’t seem to replicate. The company’s investment in youth sports is critical.
But remember: This is an acquisition. It’s less about what Dick’s brings to the table and more about what Foot Locker can grant access to.
Foot Locker holds plenty of value as a brand with a long history in sneaker culture, even as a distressed asset.
Foot Locker holds an authenticity in the space as a wholesale retailer that Dick’s has steadily grown in recent years, but hadn’t quite developed.
Foot Locker’s footprint is also expansive. The brand has around 2,400 stores across 26 countries, including all of its brands (Foot Locker, Champs, Kids Foot Locker, WSS, and Atmos).
It’s got a massive digital footprint with a built-in consumer rewards program that Dick’s can take advantage of.
It also has deep ties with Nike, the leading sportswear brand. Over half of Foot Locker’s footwear business last year came from the Swoosh. Only 28 percent of Dick’s footwear sales were Nike, per Footwear News.
Buying Foot Locker when the brand is down and rising tariffs is undoubtedly a risk, but it’s one worth taking on.
The big picture: With this acquisition, DSG immediately becomes the leader in the footwear retailer space. It eclipses rivals like JD Sports and all its brands fairly easily. They own the block now.
Is that good for the consumer? That’s another conversation that we’ll have later. Regardless, the impact of this move looms large.
Don’t buy the rise
There’s been a bit of a celebratory vibe in the sneaker space this week because President Donald Trump decided to backtrack on his tariff war against China.
What happened: Trump reduced the 145 percent tariff rate on Chinese goods to 30 percent after coming to a de-escalation agreement with China.
The tariff reduction will last for 90 days.
China also agreed to reduce its 125 percent tariff rate on US goods down to 10 percent for the next 90 days.
This will all be revisited by both sides in three months when the 90-day period has ended.
Where things stand: The market is currently seeing a bit of a rebound because of this de-escalation. We’re seeing reports about how inflation hasn’t quite hit the country as hard as projected yet and how the GDP isn’t as terrible as economists thought it might be.
But I’m here to tell you now: Don’t drink the Kool-Aid. Do not pass Go. Do not collect $200. There is still peril ahead.
Be smart: It’s no surprise that Trump backed down in the manner he did on tariffs across the board. This was always the only sensible way for things to go, but especially after seeing how it’s already impacted things.
The supply chain has been strained in ways we haven’t seen since the peak of the COVID-19 pandemic. At some point, we’ll have real shortages in key goods to worry about.
There’s also the matter of a 30 percent tariff still remaining in place. Obviously, it’s not 145 percent, but it’s not nothing. That will ultimately stack along with the 10 percent tariff placed on goods from everywhere else.
Plus, we’re revisiting all of this with China in 90 days. We’re doing the same with the other tariffs in 60 days. We could wind up right back where we started, folks.
The big picture: Don’t let this lag fool you — the impact is coming. You’d best be ready for it.
Nike’s Hyperice drop is here
You wanted innovation? You got it. After about a year of waiting, Nike and Hyperice’s Hyperboot will finally hit retail on Saturday.
Background: Nike and Hyperice collaborated to create the Hyperboot, the next big innovation in athletic recovery. The boot's air compression system is supposed to enhance an athlete’s recovery and warm-up sessions.
The boots are built with Hyperice’s Normatec air bladder system to distribute compression along the foot.
It also includes a massage and heating systems to distribute heat and gently relax the muscles in the foot and ankle.
A review: Weartesters did a fantastic job of explaining the Hyperboot's features. If you’re looking for a more hands-on review, this is a great one to check out.
There’s no question that this thing is a fascinating advancement in athletic technology. It’s something that the best of the best of Nike’s athletes have used — Team USA used it in the Olympics last year.
Yes, but: The big question with these isn’t really about the value they provide to the wearer — it’s about how much they’ll cost.
These retail for $900. That’s a lot of money — even for folks who might be willing to spend upwards of $200 on pairs of Jordans. It makes me wonder how well these will sell.
To be fair: The athletes who will wear the hyperboots and the sneakerheads who buy Jordans are not necessarily the same audience. There is overlap, sure. But it’s not a ton. The target audience for these will naturally be folks who are active almost every single day. And, for them, it may be worth it.
Will that be a huge consumer base? My guess is no. But if this technology is effective and can serve as a flex for Nike to show what the brand can build, I think it’s a major positive for the brand as it continues to climb out its rut.
A clear look at the AE 2
Every look we’ve seen of Adidas’ AE 2 so far has either been unofficial or a literal half-measure.
Not anymore. We’ve got our first, clean picture of these joints. This “Lucid Orange” colorway will be released next February for the NBA All-Star game, per Sole Retriever.
My take: This isn’t the best colorway, to be sure. It gives me orange sherbert ice cream vibes, which isn’t my favorite. But I do like the model!
These are currently set to retail for $130 in adult sizes. Considering the tariff situation, we’ll see if that sticks, but that’s where we’re at today.
What do you think?
#TheKicksWeWear
LET’S GET IT, PEOPLE!!!! Y’all pulled out the good stuff for me. Appreciate you!
First the homie Kali came through with the Plaid Dunks for World Mental Health Day. Big shoutout to that! Love it.
The homie Rick Dubb came through with the UnheardOf AdiStar joints. These joints are CRAZY man.
My guy Jovan brought out the new A’ja joints. Nike is really on one with these. WHEW that blue.
The homie Rohan came through in the Adi Predator Megaride. I cannot stress enough how much I love this shoe.
Then the homie Jess brought us home with the Roman Empire Forces. I WISH I didn’t look stupid in forces. I would love to rock these man.
SMOKED it. Good stuff, y’all.
That’s a wrap. Thanks so much for reading today. I appreciate you. Have a fantastic weekend.
If you have any questions, comments or concerns feel free to reach out at mikedsykes@gmail.com or shoot me a message via Substack.
Until next time, gang. Peace and love. Be safe, be easy, be kind. We out.
-Sykes 💯
Thanks for sharing Chris' video review of the Hyperboot.
For what it's worth on price, a Hyperice insider told us they were going to be $200-300 less expensive but came into the US during the absolute peak of tariff craziness. That forced them to raise the price. It's a more compelling product if they can keep the original price. It's become my number one example of how this tariff stuff can affect domestic businesses and their plans.
Foot Locker news makes sense. Speaking as a normie consumer, I'm not sure Foot Locker has a place in 2025. If I want shoes, I can order right from Nike, adidas or whoever. And the store doesn't have sport equipment like Dick's does. And when I go to FL and they don't have a shoe my size, the employees check online for it... I can do that myself.