Dick's Sporting Goods, Inc. recently entered into a merger agreement with Foot Locker, Inc., and the unaudited pro forma condensed combined financial information provides insights into the potential impact of this merger. The pro forma combined balance sheet as of August 2, 2025, shows a significant increase in total assets from $10.69 billion to $16.69 billion, reflecting the combined entity's expanded asset base.
In terms of current assets, the cash and cash equivalents of the combined entity decreased from $1.23 billion to $1.18 billion after accounting for transaction adjustments. The inventory, a crucial component for retail companies, also saw a substantial increase from $3.40 billion to $5.11 billion after combining the two companies' figures. These changes indicate a notable strengthening of the combined entity's liquidity and inventory position.
Looking at the equity side, the total stockholders' equity increased from $3.36 billion to $5.33 billion on a pro forma basis. This increase can be attributed to adjustments in additional paid-in capital, retained earnings, and accumulated other comprehensive loss.
Moving on to the statement of operations, the pro forma combined net sales for the twenty-six weeks ended August 2, 2025, surged from $6.82 billion to $10.47 billion. The gross profit also experienced a substantial rise, increasing from $2.52 billion to $3.49 billion after considering the transaction accounting adjustments.
In terms of net income, the pro forma combined figure stands at $256.32 million compared to Dick's Sporting Goods' historical net income of $645.69 million. This indicates a significant change in the combined entity's profitability, reflecting the impact of the merger and the associated accounting adjustments.
The above figures provide a glimpse into the potential financial implications of the merger between Dick's Sporting Goods, Inc. and Foot Locker, Inc. It's essential to note that these unaudited pro forma condensed combined financials are subject to change and represent management's best estimates at this stage. As the merger progresses and more information becomes available, the actual financial outcomes may differ from these pro forma results. As a result of these announcements, the company's shares have moved -0.36% on the market, and are now trading at a price of $221.24. If you want to know more, read the company's complete 8-K report here.
