logo
  Join        Login             Stock Quote

Finish Line (FINL) Posts Breakeven Earnings In 3Q, Updates FY View

 January 04, 2013 07:56 AM
 


(By Balachander) Finish Line Inc. (NASDAQ: FINL) posted breakeven earnings per share for the third quarter as margins contracted and expenses rose and the retailer of athletic apparel updated its forecast for the full year.

Shares retreated 6.41 percent in premarket trading on Friday.

For the quarter ended Dec. 1, the company lost $809,000 versus a profit of $5.55 million in the same period a year ago. Earnings per share were breakeven.

Net sales rose 5.2 percent to $297 million, surrounding market consensus of a growth of 5 percent. Comparable store sales advanced 3.6 percent as Digital comparable sales surged nearly 25 percent.

[Related -Traders Pick Up Verizon Calls As Shares Rise]

Gross margin contracted to 30.3 percent from 32.3 percent in the year-ago quarter.

"The third quarter was clearly more challenging than we anticipated," commented CEO Glenn Lyon. "Sales came in below plan due primarily to a shift within athletic footwear trends and a less than favorable consumer response to the new ecommerce site we launched in mid November."

"At the same time, we did not adjust our cost structure quickly enough in response to slowing sales trends," Lyon added.

Selling, general and administrative expenses increased 10 percent.

Looking ahead for the fourth quarter, Finish Line forecasts earnings per share between 74 cents and 87 cents on comparable store sales growth in the low single digit range. Analysts expect earnings of 82 cents per share.

[Related -Fourteen Dividend Paying Machines For Further Research]

For the year ending March 2, 2013, the company now expects EPS between $1.47 and $1.51, from the growth range of 6 percent to 9 percent projected earlier. Analysts expect EPS of $1.64 on sales of $1.46 billion.

The Indianapolis, Indiana-based company offers athletic casual footwear, apparel, and accessories for men, women, and kids. The company also sells merchandise through its Web-site, finishline.com.

For the second quarter, Finish Line earned 49 cents on sales of $385 million and gross margin of 35.0 percent.

The stock, which has been trading between $17.41 and $26.16 over the past 52 weeks, ended Thursday's regular trading at $19.04.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageADP: US February Payrolls Continue To Grow, But At Slower Rate

Payrolls at US companies posted another respectable gain in February, advancing 212,000 over the previous read on...

article imageAre You Prepared For Negative Interest Rates?

Last Tuesday, all eyes were on Federal Reserve Chief Janet Yellen. In prepared testimony, she offered a few read on...

article imageGreek Problems Born from Socialism

Our weekly commentaries provide Euro Pacific Capital's latest thinking on developments in the global read on...

article imageThe Eurozone: On The Road To Recovery With A Lingering Risk

Back in September the idea that the Eurozone's economy could potentially undergo a recovery (see post) was read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.