09:29 AM EST, 03/06/2024 (MT Newswires) -- Foot Locker ( FL ) pushed back its long-term core profitability target and said it won't restart dividend payments even as fiscal fourth-quarter results came in ahead of expectations, while the retailer laid out a full-year earning target that trailed Wall Street's view.

Foot Locker ( FL ) reiterated the 8.5% to 9% earnings before interest and tax margin estimate outlined in March last year when it rolled out its Lace Up plan to drive growth, but said it will take longer. "Given our lower starting point exiting 2023, we expect a two-year delay in achieving that goal and now see reaching that target by 2028," Chief Financial Officer Mike Baughn said in a statement Wednesday.

"As our margins and cash flows improve, we will continue to prioritize investing in our business, and enhancing financial flexibility to continue to support our strategic objectives," Baughn said. "In that context, 2024 will serve as a cash rebuilding year, and we, therefore, are not resuming a dividend at this time."

Foot Locker ( FL ) suspended its dividend in August, saying at the time it wanted flexibility to invest in the business to return it to growth. The shares, which had rallied 10% so far this year through Tuesday, sank 14% in pre-market trading Wednesday.

The retailer sees 2024 sales in a range of a 1% decline to a 1% increase, with comparable sales growth between 1% to 3%. Constant currency sales fell 7% in 2023 to $8.15 billion while comparable sales dropped 6.7%. Full-year adjusted earnings are pegged between $1.50 to $1.70 a share, beneath the Street's expectation for $1.81 a share.

In the fourth quarter ended Feb. 3, the sneakers retailer said adjusted EPS fell to $0.38 from $0.97, but that topped the Street's view for $0.32. Revenue was up 2% to $2.38 billion, better than the $2.28 billion analysts expected.

"We built significant momentum through the holiday season, driven by full-price selling in addition to compelling promotions," Chief Executive Mary Dillon said in the statement. "We also proactively reinvested in markdowns to end the year with leaner inventory levels compared to our expectations."

Price: 29.14, Change: -5.17, Percent Change: -15.07