Finish Line Slumps as Second-Quarter Earnings Miss EstimatesLindsey Rupp
Finish Line Inc., the mall-based sneaker retailer that frequently operates within Macy’s Inc. department stores, plunged the most in 2 1/2 years after poor demand for basketball shoes hurt sales.
Second-quarter earnings amounted to 54 cents a share, the Indianapolis-based company said today in a statement. Analysts had projected 60 cents on average, according to data compiled by Bloomberg. Sales were $466.9 million in the period, which ended Aug. 30. That missed a prediction of $477.7 million.
Some basketball products didn’t sell well last quarter and the company is working to retool its lineup, Chief Executive Officer Glenn Lyon said in the statement. While Finish Line reiterated its full-year forecast, the results spurred fresh concerns about the footwear market. Skechers Inc. shares dropped almost 10 percent earlier this week after analysts suggested that sales were slowing.
“Needless to say, we’re disappointed on our second quarter performance,” Lyon said on an earnings conference call. “We’ve been working diligently with our brand partners to improve our assortments in basketball as well as to continue to elevate our leadership position in running to get sales back in line.”
The stock fell 15 percent to $25.11 at the close, the biggest decline since March 2012. Finish Line shares had climbed 4.4 percent this year before today.
Nike Inc., the world’s largest sporting-goods maker, reported first-quarter profit yesterday that exceeded analyst’s estimates. The company said it saw particular strength in performance categories, including basketball and running merchandise.