US footwear and apparel retailer Foot Locker anticipates a net loss of $363m in its preliminary first-quarter results for fiscal 2025, a stark contrast to the $8m net income reported in the same period of the previous year.

Dick’s, the retail leader in sporting goods, will acquire Foot Locker, the leading specialty footwear retailer, for $2.4 billion. Both depend heavily on sneaker sales.

Foot Locker owns Kids Foot Locker, Champs Sports, WSS, and atmos, and has 2,400 stores in 20 countries, including North America, Europe, and Asia.