Shares of Foot Locker Inc. /zigman2/quotes/204092533/composite FL -4.33% sank 4.5% in premarket trading Friday, after the athletic shoe and accessories retailer reported a wider-than-expected fiscal first-quarter loss as revenue fell more and the gross margin rate dropped as the COVID-19 pandemic led to store closures. The company also said it was suspending its quarterly dividend--the last dividend paid was 40 cents a share--"to preserve financial flexibility." The company swung to a net loss of $98 million, or 93 cents a share, for the quarter to May 2, from net income of $172 million, or $1.52 a share, in the year-ago period. Excluding non-recurring items, the adjusted loss per share was 67 cents, compared with the FactSet consensus for a loss of 12 cents. Sales dropped 43% to $1.18 billion, below the FactSet consensus of $1.36 billion. The gross margin rate declined to 23.0% from 33.2%, while the expense rate increased to 26.9% from 20.0%. Merchandise inventory increased 20.4% to $1.46 billion. The company said the phased reopening of its stores is underway. The stock has tumbled 24.8% year to date through Thursday, while the S&P 500 /zigman2/quotes/210599714/realtime SPX -2.23% has declined 8.7%.