logo
Share SHARE
FONT-SIZE Plus   Neg

Amended: Finish Line Q4 Profit Rises, Expects 30% Fall In Q1 EPS - Update

Amendment: corrects revenue percentage

Shoes and apparel retailer Finish Line Inc. (FINL) reported Friday a higher fourth-quarter profit, reflecting about 19 percent growth in net sales. For the first quarter, the company expects comparable store sales to be up in the mid-single digit range, but expects earnings per share to be down about 30 percent. The company's shares dropped about 8 percent in the pre-market.

Finish Line said its expectation for the first quarter is based on planned level of strategic investments, combined with lower product margins due to a shift in the promotional calendar, and occupancy cost deleverage.

Glenn Lyon, chairman and chief executive officer of the company said, "As the retail landscape continues to rapidly evolve, we are committed to further distinguishing the Finish Line brand from the competition and building a sustainable multi-division, omni-channel business for the future."

In the fourth quarter, the company's net income increased to $41.92 million or $0.80 per share from $34.25 million or $0.63 per share reported last year.

Adjusted earnings per share, which excluded the impact of impairment charges, increased 24.6 percent to $0.81 from $0.65 per share a year ago. On average, 12 analysts polled by Thomson Reuters expected earnings per share of $0.81 for the quarter. Analysts' estimates typically exclude one-time items.

The fourth quarter ended March 3, 2012 represented 14 weeks, while the prior-year quarter had a 13-week period ended February 26, 2011.

Net sales for the quarter grew 18.6 percent to $456.26 million from $384.6 million in the preceding year, which also exceeded analysts' estimate of $432.62 million. Comparable store sales increased 10.8 percent from last year. Digital sales, which are included in the comparable store sales results, increased 38.3 percent.

Looking ahead to the fiscal year ending March 2, 2013, the company expects to generate earnings per share growth in the mid-single digits, with comparable store sales also expected in the mid-single digits.

Finish Line added that as its investments begin to drive returns, it expects earnings per share growth to accelerate into the low- to mid-teens beginning in fiscal 2014.

FINL closed Thursday's regular trading at $25.34 on the Nasdaq. In the pre-market activity, the shares are down 8.05 percent.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

More Breaking News

Editors Pick
Saudi Arabian Oil Co., most popularly known as Saudi Aramco, is yet to finalize a date for its long planned initial public offer, but reports said, citing Saudi Arabian officials, that the IPO most likely would be conducted in the second half of 2018. Saudi Aramco Chief Executive Officer Amin Nasser told Bloomberg that the country has promised to reduce the overall tax rate... Dutch semiconductor equipment maker ASML Holding NV reported Wednesday significantly higher profit in its fourth quarter, with higher system sales, selling price and improved margin. Looking ahead, for the first quarter, the company sees sequentially lower net sales and margin. Retail giant Walmart, the nation's largest private employer with nearly 1.5 million associates in the U.S., on Tuesday announced the addition of 10,000 retail jobs this year.
comments powered by Disqus
Follow RTT