12:55 PM EDT, 05/30/2024 (MT Newswires) -- Foot Locker ( FL ) reported fiscal first-quarter revenue that matched analysts' estimates and earnings per share above expectations, while the athletic retailer reiterated its full-year outlook.

Total revenue fell to $1.88 billion for the three months ended May 4 from $1.93 billion the year earlier and matched the average analyst estimate on Capital IQ. Comparable sales decreased by 1.8%, which Foot Locker ( FL ) said included a 220 basis-point impact from the ongoing repositioning of Champs Sports. Six analysts surveyed by Capital IQ had projected a same-store sales decline of 1.6%.

Adjusted EPS dropped to $0.22 from $0.70 year over year but beat the $0.12 consensus view. Gross margin fell 120 basis points with markdowns sequentially moderating.

"We delivered comparable sales results and gross margin in line with our expectations, while earnings per share outperformed due to disciplined expense management and some favorable shifts in expense timing," Chief Executive Mary Dillon said in a statement.

Shares of Foot Locker ( FL ) soared nearly 20% in Thursday midday trade.

The company reiterated its fiscal 2024 outlook for sales to be down 1% to up 1% from fiscal 2023's revenue of $8.17 billion, with comparable sales seen growing of 1% to 3%. It continues to see full-year adjusted EPS in the $1.50 to $1.70 range, implying expansion from $1.42 the year earlier.

Analysts surveyed by Capital IQ are modeling for revenue of $8.12 billion and normalized EPS of $1.54 in the ongoing year.

The company's planned launch of the FLX Rewards program in the US this quarter will strengthen Foot Locker's ( FL ) "demand flywheel" as the company evolves into an omni-channel retailer, according to Dillon. "Importantly, we are well-positioned with fresh assortments as we approach the summer and back-to-school seasons," she said.

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