Indianapolis-based The Finish Line Inc. (Nasdaq: FINL) is reporting fiscal third quarter profit of $2.6 million, compared to $2.3 million during the same period last year. Chief Executive Officer Glenn Lyon says the company did not achieve its “profitability plan” for the quarter and will adjust capital spending to create a more flexible expense structure. December 19, 2014
INDIANAPOLIS, Ind. – The Finish Line, Inc. (NASDAQ: FINL) today reported results for the thirteen weeks ended November 29, 2014.
For the thirteen weeks ended November 29, 2014:
Consolidated net sales were $395.8 million, an increase of 8.6% over the prior year period.
Finish Line comparable store sales increased 4.5%.
On a GAAP basis, diluted earnings per share were $0.05.
Non-GAAP diluted earnings per share, which excludes the impact of impairment charges and store closing costs, employee resignation costs and the recognition of a one-time tax benefit were ($0.02).
“Third quarter comparable sales rebounded from second quarter trends, however merchandise margin pressure kept us from achieving our profitability plan,” said Glenn Lyon, Chairman and Chief Executive Officer of Finish Line. “We remain confident in the strategic course we have set for the company and we'll continue to invest in the omnichannel initiatives focused on delivering the long-term financial goals we have previously outlined. That said, we are adjusting our near-term capital spending plans and creating a more flexible expense structure to protect profitability until stronger full price selling trends reemerge.”
As of November 29, 2014, consolidated merchandise inventories increased 10.6% to $398.6 million compared to $360.5 million as of November 30, 2013.
The company repurchased 1.2 million shares of common stock during the thirteen weeks ended November 29, 2014, totaling $29.9 million. The company has 1.9 million shares remaining on its current Board authorized repurchase plan.
As of November 29, 2014, the company had no interest-bearing debt and $85.4 million in cash and cash equivalents, compared to $111.9 million as of November 30, 2013.
For the fiscal year ending February 28, 2015, Finish Line now expects non-GAAP diluted earnings per share to be flat to fiscal year 2014 non-GAAP diluted earnings per share of $1.67. The company expects Finish Line comparable store sales to increase low to mid-single digits.
About The Finish Line, Inc.
The Finish Line, Inc. is a premium retailer of athletic shoes, apparel and accessories. Headquartered in Indianapolis, Finish Line has approximately 1,040 Finish Line branded locations primarily in U.S. malls and shops inside Macy’s department stores and employs more than 14,000 sneakerologists who help customers every day connect with their sport, their life and their style. Online shopping is available at www.finishline.com and www.macys.com. Mobile shopping is available at m.finishline.com. Follow Finish Line on Twitter at Twitter.com/FinishLine and “like” Finish Line on Facebook at Facebook.com/FinishLine. Track loyalty points and find store and product information with the free Finish Line app downloadable for iOS and Android customers.
Finish Line also operates the Running Specialty Group. This includes 66 specialty running stores in 15 states and the District of Columbia under The Running Company, Run On!, Blue Mile, Boulder Running Company, Roncker’s Running Spot, Running Fit, VA Runner, Capital RunWalk, Richmond RoadRunner, Garry Gribble’s Running Sports and Run Colorado banners. More information is available at www.run.com or www.boulderrunningcompany.com.
Source: The Finish Line Inc.