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.

The major retailer says it plans to keep the Foot Locker brand, which includes Kids Foot Locker and Champs Sports.