Specialty athletic retailer turns in mixed performance

The Finish Line met earnings estimates for its first quarter amid sales that were less than expected.



The retailer reported net income of $8.1 million. Adjusted earnings per share came in at $0.23, in line with analysts' expectations.



Consolidated net sales inched down 0.1% to $429.8 million in the quarter ended May 27. Same-store sales decreased 1.1%. Same-store sales at Finish Line in-store shops at Macy’s 13.6%.



"We delivered earnings in-line with our expectations despite some unanticipated headwinds late in the quarter,” said Sam Sato, CEO of Finish Line. “Following low-single digit comparable sales growth for the combined March/April period, weak traffic trends, and a difficult product launch comparison in May resulted in comps coming in below plan."



The retailer reaffirmed its outlook for the fiscal year ending March 3, 2018, amid a "challenging" retail environment, saying it expects comparable store sales to increase in the low-single digits range and adjusted earnings per share to be between $1.12 and $1.23.



"While the retail environment remains challenging, we continue to be confident that our merchandising, digital, in-store, and operational initiatives underway will help fuel profitable growth beginning in the back half of this fiscal year, better positioning the company to deliver increased shareholder value over the long-term," Sato said.



The Finish Line operates approximately 950 branded locations, includes shops inside Macy’s stores nationwide.