Investing.com -- Foot Locker (NYSE:FL) shares climbed more than 1% in the Wednesday premarket trade after the footwear retailer reported better-than-anticipated earnings and comparable sales (comps) for the fourth quarter of fiscal 2025.

The company posted Q4 earnings per share (EPS) of $0.86, surpassing the consensus estimate of $0.72.

Total revenue for the three-month period stood at $2.24 billion, short of the $2.32 billion projected by analysts. However, comparable sales rose by 2.6%, ahead of the expected growth of 2.25%.

Foot Locker said its gross margin expanded by 300 basis points year-over-year. 

"We delivered fourth quarter results above our previously revised expectations, as our investments and execution drove positive comparable sales and meaningful gross margin improvement compared to the prior year," said Mary Dillon, President and CEO of Foot Locker. 

"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."

For fiscal year 2026, the company expects earnings per share between $1.35 and $1.65, below the consensus estimate of $1.71. Sales are projected to range from a 1% decline to a 0.5% increase, with comparable sales expected to rise between 1% and 2.5%, compared to the estimated 2.02%.

Foot Locker anticipates a gross margin of 29.3% to 29.7%, with the consensus estimate at 29.6%.

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