Dick's Sporting Goods, Inc. has recently entered into an agreement to merge with Foot Locker, Inc. As a result, the unaudited pro forma condensed combined financial information has been prepared to reflect the potential impact of this merger. The unaudited pro forma condensed combined balance sheet as of August 2, 2025, shows the following adjustments:
- The combined cash and cash equivalents amount to $1,178,844 after taking into account a reduction of $62,319 due to transaction accounting adjustments.
- Inventories, net, have significantly increased to a total of $5,112,914 after the merger, reflecting a substantial addition from Foot Locker, Inc.'s historical figures.
- Goodwill has been reallocated, resulting in a decrease of $420,666 due to transaction accounting adjustments.
- Total assets after the merger amount to $16,693,736, representing a significant increase from the individual historical figures of both companies.
The unaudited pro forma condensed combined statement of operations for the twenty-six weeks ended August 2, 2025, and the year ended February 1, 2025, also illustrates the impact of the merger:
- Net sales for the twenty-six weeks ended August 2, 2025, amount to $10,472,293, reflecting the combined sales of both companies after the merger.
- The cost of goods sold, including occupancy and distribution costs, has increased to $6,979,660, considering adjustments and combined figures from both companies.
- The income from operations shows a significant change, amounting to $539,051, reflecting the impact of the merger on the combined company's financial performance.
These figures demonstrate the substantial changes in various financial metrics resulting from the merger between Dick's Sporting Goods, Inc. and Foot Locker, Inc. The market has reacted to these announcements by moving the company's shares -0.6% to a price of $220.70. For more information, read the company's full 8-K submission here.
