"The significant increase in our fourth quarter net income resulted from strong comparable-store sales growth and gross margin rate expansion, as well as effective expense management," Foot Locker CEO Ken Hicks said in a statement. Comparable store sales climbed 7.3% during the period. Foot Locker's merchandise inventory was $1.06 billion at the close of 2010, up 2.1% from the end of last year. Foot Locker, which bought back $13.7 million worth of its shares last quarter, increased its dividend by 10% last month.