Finish Line Reports Profit Decline
September 25 2015 - 8:50AM
Dow Jones News
Finish Line Inc. said profit slipped in its latest quarter, as
higher overhead expenses offset a tepid increase in revenue.
Sales at stores open for at least a year edged 1.5% higher
during the second quarter. The metric cooled after jumping 5.5% in
the previous period, and the deceleration was sharper than some
analysts anticipated. Analysts at B. Riley & Co., for example,
had predicted a 4% rise, saying this week that athletic footwear
growth moderated from the beginning to the end of the quarter,
partly due to a later Labor Day this year.
Overall, the retailer reported a profit of $25.9 million, down
from $26.2 million. On a per-share basis, Finish Line earned 57
cents, up from 54 cents thanks to a lower share count. The company
repurchased about $4.6 million in shares during the quarter.
Revenue increased 3.5% to $483.2 million.
Analysts projected 57 cents in per-share earnings on $490.8
million in sales, according to Thomson Reuters.
Expenses rose 5.1% to $117.6 million. The company's gross margin
narrowed to 33.0% from 33.2%.
The Indianapolis-based company's results in recent quarters have
been crimped by more promotions and lower mall traffic, factors
facing many retailers.
Finish Line's results come after athletic-gear company Nike
Inc., one of Finish Line's main suppliers, said Thursday that
profit in its latest quarter surged 23% on 5% revenue growth, owed
in part to strength in China.
For the full year, Finish Line affirmed its forecast of
same-store sales and earnings growth in the low-single to
mid-single digit range.
Shares in the company dropped 2.5% in premarket trading, more
than erasing the stock's year-to-date gain through Thursday's
close.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 25, 2015 08:35 ET (12:35 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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