00:00I was taking a look at the one-year chart of Foot Locker to see, you know, how expensive is this deal really?
00:05And that $24 a share is actually $2 above the one-year average.
00:11So it's not just a more than 80% premium.
00:14It's actually more expensive than the average trade all year.
00:18Yeah, so, well, Shoe M&A is pretty hot right now, right?
00:20We had Skechers last week.
00:21True.
00:22Yeah, $9 billion deal.
00:23We've now got $2.4 billion being paid by Dick's for Foot Locker.
00:28But at first blush, this looks like it might be a tariff-related play, right?
00:31Both companies sell brands like Nike and Adidas.
00:34They have big manufacturing hubs in China and Vietnam.
00:37And so anything that can help them weather that storm is great.
00:40But, of course, the truth is the American consumer was spending less even before Liberation Day.
00:44And both companies have been looking for ways to kind of boost sales.
00:48And, you know, this deal will give Dick's Sporting Goods wall presence in the walls over here in America and a bigger international presence.
00:55So, you know, apologies for the pun.
00:58But if the shoe fits, then it does fit.
01:00Oh.
01:01That's pretty good.
01:02That's pretty good.
01:02I like that pun.
01:03I'll take it.
01:03We were actually looking for other shoe sellers on our morning meeting, right?
01:08The finish line already got taken out.
01:09You mentioned Skechers was taken private.
01:12Yeah.
01:12I'm not sure about designer shoe wear if DSW is a target.
01:18Well, I'm not sure about that.
01:19I mean, most sectors at the moment, retail included, we're watching for signs for any kind of rebound in M&A, right?
01:25The market has dried up this year, despite what bankers will tell you about there always being the right conditions for the – sorry, M&A is available for the right deal.
01:35But it's been pretty lackluster.
01:38We have seen some signs of encouragement recently, this deal included last week.
01:42As I mentioned, Skechers, we had Sunoco Parkland.
01:46So, you know, I think whether it's in retail, whether it's in energy, whatever, people will be looking for a continuation of that.
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