Finish Line posts Q3 profit boosted by tax gain

Indianapolis The Finish Line rose to a profit in the third quarter from a year-ago loss, helped by a big one-time tax gain. The retailer also controlled its expenses, managed inventory better and improved store operations as it navigated a cautious consumer-spending environment, CEO Glenn Lyon said in a statement.

In the quarter that ended Nov. 28, Finish Line had a profit of $6.6 million compared with a loss of $8.8 million a year earlier. Its big one-time tax gain of $6.5 million was related to the termination of its plans to buy Genesco, a shoe and hat retailer whose brands include Journeys, Hat World, and Lids. Finish Line had proposed the $1.5 billion deal in June 2007, but it later fell apart.

Excluding items, the company broke even, beating analysts' average estimates. Revenue slipped 0.2% to $240.1 million from $240.6 million, also topping the $234 million expected by analysts polled by Thomson Reuters.