Foot Locker eyes best day after $2.4 bln deal from Dick's Sporting Goods

Shares of Foot Locker FL.N surge as much as 83.6% to $23.63 in early trade

Stock set for best day on record, if gains hold

Co enters into definitive merger agreement under which Dick's Sporting Goods DKS.N will acquire it for $2.4 billion

The $24-per-share deal represents an 86.5% premium to FL's last close price of $12.87

Separately, co also reports preliminary Q1 results, says it will not be providing or updating previous guidance

FL expects comparable sales to decline by 2.6% and adjusted loss per share of 7 cents vs estimates for loss of 4 cents - data compiled by LSEG

DKS shares down ~13% at $182.41

Brokerage TD Cowen downgrades DKS to "hold" from "buy", cuts PT to $216 from $245

Brokerage says acquisition likely to produce low returns, and that it would be a "strategic mistake" and a "misallocation of capital" at such a premium

FL and DKS down ~40% and ~8% respectively, YTD, as of last close