Foot Locker, Inc. (NYSE: FL) shares soared 11.89% in Wednesday trading, following the release of its impressive fourth quarter and fiscal 2024 results. The company reported strong financial performance, indicating that its strategic "Lace Up" plan is gaining traction and delivering positive outcomes.

For the fourth quarter ended February 1, 2025, Foot Locker reported:

• Total revenue of $2.24 billion, down 5.8% year-over-year, but beating analysts' expectations.
• Comparable store sales growth of 2.6%, with combined global Foot Locker and Kids Foot Locker comparable sales up 3.6%.
• Gross margin expansion of 300 basis points, driven by improved merchandise margin recapture trends.
• Adjusted earnings per share (EPS) of $0.86, surpassing the consensus estimate of $0.72.

Mary Dillon, President and CEO of Foot Locker, stated, "Our return to positive comparable sales growth, gross margin expansion, and positive free cash flow in fiscal 2024 serve as proof points that our Lace Up Plan is working." The Lace Up Plan focuses on customer-facing investments, inventory control, and expense management to improve profitability.

For fiscal year 2025, Foot Locker provided the following guidance:

• Comparable sales growth of 1% to 2.5%.
• Gross margin of 29.3% to 29.7%, reflecting continued merchandise margin improvement.
• Adjusted EPS of $1.35 to $1.65.

The strong fourth-quarter performance and positive outlook for fiscal 2025 suggest that Foot Locker's strategic initiatives, including store refreshes, digital enhancements, and brand partnerships, are resonating with customers and driving growth. However, the company cautioned that consumer and category promotional pressures are expected to remain uncertain, particularly in the first half of 2025.