Foot Locker Inc (NYSE:FL) reported Q4 FY23 sales of $2.38 billion, surpassing analyst estimates of $2.28 billion, with a 2% year-on-year growth. However, comparable store sales fell by 0.7%, and adjusted EPS of $0.38 beat the consensus of $0.32. The company experienced a gross margin contraction of 350 basis points due to higher markdowns, despite occupancy leverage. Operating income declined by 44% to $33 million, with a 1.4% operating margin. Foot Locker opened 29 new stores, remodeled or relocated 66, and closed 113 stores. For FY24, it forecasts comparable sales growth of 1% to 3% and expects sales to range between -1% and +1%, with adjusted EPS of $1.50 to $1.70, below the consensus of $1.93. Shares dropped 12.5% to $30.01 in premarket trading.