Foot Locker (NYSE:FL) saw its shares climb over 5% intra-day today after the footwear retailer reported fourth-quarter fiscal 2025 results that exceeded earnings and comparable sales expectations. Despite a revenue shortfall, the company’s improved profitability and positive sales momentum bolstered investor confidence.

The retailer posted adjusted earnings per share (EPS) of $0.86, beating analyst projections of $0.72. While total revenue came in at $2.24 billion—falling short of the expected $2.32 billion—comparable sales rose 2.6%, surpassing the anticipated 2.25% increase.

A key highlight of the quarter was a 300-basis-point expansion in gross margin, reflecting the company’s focus on operational efficiencies and strategic investments. Foot Locker credited these gains to its ongoing turnaround efforts under the Lace Up Plan, which has been driving improved sales and profitability.

Looking ahead to fiscal year 2026, Foot Locker anticipates earnings per share between $1.35 and $1.65, below the consensus estimate of $1.71. Sales are expected to range from a slight 1% decline to a modest 0.5% increase, while comparable sales are projected to grow between 1% and 2.5%, compared to analyst expectations of 2.02% growth.