Indianapolis-based The Finish Line Inc. (Nasdaq: FINL) is reporting a fiscal third quarter loss of $40.4 million, compared to a loss of $21.8 million during the same period a year earlier. Chief Executive Officer Sam Sato says, despite disappointing results that "fell short of our expectations," the company is making progress.
The Finish Line is continuing to explore options for its JackRabbit specialty running shoe business and has included it in the discontinued operations portion of its quarterly earnings report. The company announced last month it was mulling different scenarios, including potential sale, of the once-promising unit.
Sato says "steep declines in apparel and accessories offset a high-single digit footwear comp gain and a 33 percent sales increase in our Macy’s business. While we continue to work on narrowing our soft goods assortment and aligning our offering with customer demand, our primary focus remains on growing the cornerstones of the Company’s foundation – our Finish Line footwear business and our partnership with Macy’s – through enhanced customer engagement." He says the company is continuing to progress on a more efficient operating model. Previously-implemented supply chain updates are also taking hold and Sato says The Finish Line is "just beginning to realize the $6 million in annualized savings from our actions aimed at streamlining our organizational structure." He adds "despite our recent underperformance, we remain confident in the strategic course we have set."
The company expects fiscal full year comparable store sales to range between flat to up 1 percent and earnings per share to be between $1.24 and $1.30.
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