Foot Locker, Inc. ( FL ) shares are trading higher in the premarket session on Thursday.

The company reported first-quarter adjusted earnings per share of 22 cents, beating the street view of 12 cents. Quarterly sales of $1.874 billion, missing the street view of $1.880 billion.

Total sales decreased 2.8% year over year, while comparable sales fell 1.8%. In the quarter under review, Global Foot Locker and Kids Foot Locker comparable sales increased 1.1%.

“Through our Lace Up Plan, we are strengthening our brand partnerships, enhancing customer engagement through digital and loyalty investments, and solidifying our position at the intersection of basketball and sneaker culture,” Mary Dillon, President and Chief Executive Officer.

During the first quarter, the company opened four new stores and closed 37 stores. Also during the quarter, the company remodeled or relocated 16 stores and updated 13 stores to current design standards. Inventory decreased 5.6% year-over-year.

“In stores, we are elevating the customer experience through store refreshes and our newly unveiled retail concept, which recently opened in Wayne, New Jersey, with four more locations opening this year,” Dillon added.

Foot Locker’s gross margin declined by 120 basis points as compared with the prior-year period, partially offset by occupancy leverage. Quarterly adjusted net income was $21 million, compared with $66 million in the corresponding prior-year period.

At quarter-end, the company’s cash and cash equivalents totaled $282 million, while total debt was $446 million.

As of May 4, the company operated 2,490 stores in 26 countries in North America, Europe, Asia, Australia, and New Zealand.

In addition, 206 franchised stores were operating in the Middle East and Asia.

“In stores, we are elevating the customer experience through store refreshes and our newly unveiled retail concept, which recently opened in Wayne, New Jersey, with four more locations opening this year,” Dillon added.

Outlook: The company reiterates FY24 adjusted EPS guidance of $1.50-$1.70 versus the $1.57 consensus.

The guidance includes an approximate $0.10 non-recurring charge in the second quarter of 2024 from the anticipated rollout to the rest of North America of the company’s enhanced FLX loyalty program. 

Foot Locker ( FL ) expects sales change of (1%)-1% in FY24 year over year. Gross Margin is expected to range from 29.8% to 30.0%.

Price Action: FL shares are trading higher by 13.8% to $25.63 premarket at last check Thursday.