Foot Locker Inc (NYSE:FL) stock rose 6.82% (As on March 21, 1:37:28 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 22. Foot Locker is planning to shut 400 stores by 2026 as it strives to become more relevant to younger shoppers by re-launching its retail brands, introducing “experiential” new store concepts and simplifying its operations by closing underperforming mall-based stores. The stores slotted for closing across North America account for nearly 10% of Foot Locker’s total sales. Net income decreased to $19 million, as compared with $103 million in the fourth quarter of fiscal 2021, despite comparable-store sales growing by 4.2%, driven by increased traffic and improved access to high-quality inventory, resulting in broad-based strength across brands and regions. At quarter-end, the Company’s cash and cash equivalents totaled $536 million, while debt on its balance sheet was $452 million. The Company’s total cash position, net of debt, was $84 million, as compared with $347 million last year.

FL in the fourth quarter of FY 22 has reported the adjusted earnings per share of 97 cents, beating the analysts’ estimates for the adjusted earnings per share of 52 cents, according to  Zacks Investment Research. The company had reported 0.3 percent decline in the adjusted revenue to $2.34 billion in the fourth quarter of FY 22, beating the analysts’ estimates for revenue of $2.15 billion. Gross margin declined by 290 basis points compared with the prior-year period, driven mainly by higher markdowns on increased promotional activity across the industry.

Foot Locker expects full-year earnings in the range of $3.35 to $3.65 per share. For fiscal 2024 to 2026, Foot Locker said it expects total sales growth of 5% to 6%, and comparable sales growth of 3% to 4%.

The company also revealed its new ‘Lace Up’ strategic plan for ​for fiscal years 2024 through 2026. As part of the plan, Foot Locker said it plans to expand sneaker culture and serve more sneaker occasions, provide more choice, and drive greater distinction; and power-up its portfolio, by creating more distinction among banners, including re-launching the Foot Locker brand, and by opening new formats, shifting off-mall, and closing underperforming stores. It also plans to reset the company’s loyalty program and elevate the customer relationship through enhanced analytical capabilities. Finally, the specialty footwear retailer said it wants to improve the customer experience online.