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 posted weaker results in its latest quarter, extending a challenging period for the company ahead of a planned buyout by Dick’s Sporting Goods.

Amid its $2.4 billion deal to acquire shoe retailer Foot Locker (FL), Dick's Sporting Goods (DKS) is maintaining its full-year profit forecast. Morningstar senior equity analyst David Swartz comes on The Morning Brief to weigh in on Dick's recent stock activity and share his thoughts on the retailer's acquisition of Foot Locker.