Finish Line Profit Off Slightly
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowIndianapolis-based The Finish Line Inc. (Nasdaq: FINL) is reporting fiscal second quarter profit of $5.6 million, compared to $6.1 million for the same period a year earlier. Chief Executive Officer Glenn Lyon says results were lower than expected, in part due to “softness” in basketball apparel sales. September 26, 2014
News Release
INDIANAPOLIS, Ind. – The Finish Line, Inc. (NASDAQ: FINL) today reported results for the thirteen weeks ended August 30, 2014.
For the thirteen weeks ended August 30, 2014:
Consolidated net sales were $466.9 million, an increase of 7.1% over the prior year period.
Finish Line comparable store sales increased 1.5%.
Diluted earnings per share were $0.54 in the current and prior year.
“Our second quarter results fell short of our expectations due to softness within elements of our basketball offering while our running business was up mid single digits driven by casual and performance styles,” said Glenn Lyon, Chairman and Chief Executive Officer. “We are confident that we can reaccelerate sales trends in basketball by working closely with our brand partners to improve our assortments. In combination with our market leadership position in running, advanced omnichannel capabilities and growing business relationship with Macy's, this will fuel sustainable sales and earnings growth over the long-term.”
Balance Sheet
As of August 30, 2014, consolidated merchandise inventories increased 11.5% to $329.9 million compared to $296.0 million as of August 31, 2013.
The company repurchased 133,333 shares of its common stock in the second quarter, totaling $3.6 million. The company has 3.1 million shares remaining on its current Board authorized repurchase program.
As of August 30, 2014, the company had no interest-bearing debt and $190.6 million in cash and cash equivalents, compared to $203.8 million in the prior year.
Outlook
For the fiscal year ending February 28, 2015, the company still expects Finish Line comparable store sales to be up mid single digits and earnings per share to increase in the high single to low double digit range over fiscal year 2014 non-GAAP diluted earnings per share of $1.66.
Q2 Fiscal 2015 Conference Call Today, September 26, 2014 at 8:30 a.m.
The company will host a conference call for investors today, September 26, 2014, at 8:30 a.m. Eastern. To participate in the live conference call, dial 866-923-8645 (U.S. and Canada) or 660-422-4970 (International), conference ID # 2199609. The live conference call will also be accessible online at www.finishline.com. A replay of the conference call can be accessed approximately two hours following the completion of the call by dialing 855-859-2056, conference ID #2199609. This recording will be made available through Sunday, October 26, 2014. The replay will also be accessible online at www.finishline.com.
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 1,020 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.
Finish Line also operates the Running Specialty Group. This includes 58 specialty running stores in 12 states and the District of Columbia under The Running Company, Run On!, Blue Mile, Boulder Running Company, Roncker’s Running Spot, Running Fit and VA Runner banners. More information is available at www.run.com or www.boulderrunningcompany.com.
Source: The Finish Line Inc.