Foot Locker, Inc (FL  ) stock tumbled in the premarket session on Tuesday. The company reported a third-quarter adjusted EPS of $0.33, missing the analyst consensus estimate of $0.41. Quarterly sales of $1.96 billion missed the street view of $2.02 billion.

Total sales decreased 1.4% year over year. Comparable sales grew by 2.4%, led by 2.8% growth in global Foot Locker and Kids Foot Locker comparable sales.

During the quarter, the company opened ten new stores and closed 24. It also remodeled or relocated 20 stores and updated 167 stores to current design standards. Inventory decreased 6.3% year over year.

As of November 2, the company operated 2,450 stores in 26 countries in North America, Europe, Asia, Australia, and New Zealand.

In addition, 214 franchised stores were operating in the Middle East and Asia.

Foot Locker's gross margin increased by 230 basis points. Quarterly adjusted net income was $31 million, compared with $28 million in the prior year.

At quarter-end, the company's cash and cash equivalents totaled $211 million, while total debt was $445 million.

CEO Mary Dillon flagged a softening of consumer spending trends following the peak Back-to-School period in August and a more-than-expected elevated promotional environment, leading to the third-quarter consensus misses.

Despite disappointing trends in early November as consumers held back their spending ahead of the holiday season, the company noted a meaningful and positive acceleration over the key Thanksgiving week, especially in stores.

Outlook: Foot Locker lowered fiscal 2024 adjusted EPS guidance to $1.20-$1.30 (prior $1.50-$1.70) versus the $1.53 consensus.

Foot Locker revised sales growth outlook to 1.5% to 1.0% decline (prior (1%) to +1%) in fiscal 2024 year over year, or $8.032 billion- $8.072 billion (prior $8.072 billion-$8.236 billion) versus the consensus of $8.143 billion.

It lowered the gross margin guidance to 28.7% to 28.8% (prior to 29.5%-29.7%) to reflect promotional pressure.

The company expects fourth-quarter adjusted EPS of $0.70-$0.80 (versus consensus of $0.94), sales change of (3.5)%-(1.5)% or $2.297 billion-$2.344 billion (versus consensus of $2.351 billion) and gross margin of 29.0%- 29.2%.

Foot Locker stock has plunged 22% year-to-date.

Price Action: FL stock is down 17.10% to $20.10 premarket at the last check on Wednesday.