"Foot Locker (FL) Q4 2023 Earnings: Stock Dives on Margin Impact and Holiday-Quarter Losses"
Foot Locker shares dropped over 10% in premarket trading after reporting a holiday-quarter loss and issuing weak guidance for the current year. The company's profitability goal is now expected to be delayed by two years, with a projected EBIT margin of 8.5% to 9% by 2028. Despite driving full-price sales and compelling promotions during the holiday quarter, Foot Locker's gross margin fell due to higher markdowns, leading to a 0.7% decrease in overall comparable sales. CEO Mary Dillon, who took over a little over a year ago, has been working on repositioning the company and strengthening brand partnerships, but the turnaround has been slower than expected.