Specialty athletic retailer Foot Locker Inc FL shares are gaining after reporting its third-quarter FY23 earnings results. FL reported a third-quarter FY23 sales decline of 8.6% year-on-year to $1.99 billion, beating the analyst consensus estimate of $1.97 billion. Adjusted EPS of $0.30 beat the consensus estimate of $0.25. Comparable store sales decreased by 8% versus last year, driven by ongoing consumer softness, changing vendor mix, and a 3% negative impact from the repositioning of Champs Sports. The gross margin contracted 470 basis points, driven by higher markdowns as well as occupancy deleverage and higher shrink. Selling, general and administrative expenses fell 4.5% Y/Y to $446 million. The operating margin was 2.4%, and operating income for the quarter declined 70% to $47 million. The company held $187 million in cash and equivalents as of October 28, 2023. Merchandise inventories were $1.9 billion, a 10.5% Y/Y increase.