Finish Line turns in a winning performance
The Finish Line topped Street expectations for its fiscal third quarter with earnings and sales that beat estimates.
The athletic footwear retailer reported a loss of $12.9 million, or 32 cents per share, in the quarter ended November 25, down from $40.4 million, or $1 per share, in the year-ago period. Analysts had expected a loss of 37 cents a share.
Consolidated net sales rose 1.8% to a better-than-expected $378.5 million. Same-store sales inched up 0.8%, beating expectations of a 4.5% decrease. Finish Line Macy’s sales increased 2.3%.
“We finished the third quarter ahead of expectations despite a highly promotional environment for athletic footwear,” said Sam Sato, CEO of Finish Line. “The growth initiatives that we’ve put in place are driving increased traffic to our brand and helping increase conversion. While we responded to certain pricing actions in the marketplace to be competitive, we delivered gross margin in line with forecasts, and remained highly disciplined in managing expenses and inventories.”
Looking ahead, Sato said the company will continue to be cautious in the near-term.
“But I am confident that the work we are doing to position the company for long-term growth and enhanced profitability is gaining traction,” he said.
Headquartered in Indianapolis, Finish Line runs approximately 950 branded locations in U.S. malls and shops inside Macy’s department stores.
The athletic footwear retailer reported a loss of $12.9 million, or 32 cents per share, in the quarter ended November 25, down from $40.4 million, or $1 per share, in the year-ago period. Analysts had expected a loss of 37 cents a share.
Consolidated net sales rose 1.8% to a better-than-expected $378.5 million. Same-store sales inched up 0.8%, beating expectations of a 4.5% decrease. Finish Line Macy’s sales increased 2.3%.
“We finished the third quarter ahead of expectations despite a highly promotional environment for athletic footwear,” said Sam Sato, CEO of Finish Line. “The growth initiatives that we’ve put in place are driving increased traffic to our brand and helping increase conversion. While we responded to certain pricing actions in the marketplace to be competitive, we delivered gross margin in line with forecasts, and remained highly disciplined in managing expenses and inventories.”
Looking ahead, Sato said the company will continue to be cautious in the near-term.
“But I am confident that the work we are doing to position the company for long-term growth and enhanced profitability is gaining traction,” he said.
Headquartered in Indianapolis, Finish Line runs approximately 950 branded locations in U.S. malls and shops inside Macy’s department stores.