Finish Line Lowers Outlook
Indianapolis-based The Finish Line Inc. (Nasdaq: FINL) has lowered its outlook after reporting preliminary second quarter sales more than 3 percent lower than the same quarter last year. The company has also announced a shareholder rights plan.
In a preliminary report, the athletics retailer says second quarter net sales were $469.4 million, down 3.3 percent compared to the same quarter in 2016. Chief Executive Officer Sam Sato blames the decrease in part on an athletic footwear marketplace that became "much more promotional" as the quarter progressed.
The Finish Line has now lowered its outlook for the fiscal year, expecting a sales decrease of 3-5 percent, compared to its previous guidance for an increase in the low single-digit range.
Also Monday, the company announced it has adopted a shareholder rights plan that it says will reduce the likelihood that any person or group would gain control of The Finish Line through what it calls open market accumulation or coercive takeover tactics. Chairman Glenn Lyon says the plan will help ensure that the company's board will have the opportunity to fully consider whether any proposals involving control of the company are in the best interests of shareholders.