IBJNews

Finish Line boosts earnings outlook on Macy’s deal

Back to TopCommentsE-mailPrintBookmark and Share

The Finish Line Inc. said Friday that it is increasing its earnings outlook for fiscal 2013 after announcing an agreement with Macy’s Inc. to become the exclusive athletic footwear partner of the national department store chain.

Terms of the deal call for the Indianapolis-based athletic apparel retailer to open athletic shoe shops in more than 450 Macy’s stores and on its website. The deal—announced Friday morning along with a positive quarterly financial report—is expected to boost Finish Line’s sales $250 million to $350 million a year.

Finish Line now expects fiscal 2013 earnings to grow 6 percent to 9 percent over the previous year. It had anticipated an increase of 6 percent to 7 percent.

Finish Line will lease shoe departments from Cincinnati-based Macy’s in 450 of its stores and manage the athletic footwear assortment in 225 additional Macy’s stores. The rollout of the partnership will begin next spring and should be completed by fall 2014.

“Macy’s large and profitable store portfolio, its customer base that is concentrated in a demographic that Finish Line has not penetrated to date, and most importantly, its customer-centric philosophy and omnichannel focus make them an ideal partner for us to broaden our reach beyond our bricks-and-mortar stores and our website,” Finish Line CEO Glenn Lyon said in a prepared statement.

Meanwhile, Finish Line’s profit for the fiscal second quarter ended Sept. 1 increased 19 percent, from $20.9 million, or 39 cents a share, a year ago, to $25 million, or 49 cents a share.

Revenue increased 16 percent, from $332 million to $385 million.

Analysts had expected the company to earn 44 cents a share on sales of $358.3 million.

Same-store sales rose 12.3 percent, the 12th consecutive quarter the company reported a gain in the key metric. Online sales jumped 29.6 percent.

Finish Line operated 638 stores as of Sept. 1.

Finish Line shares rose 5 percent in premarket trading, to $23.90 each. Those gains were wiped out later in the morning after company executives said in a conference call that same-store sales in September had flattened.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. I think the poster was being sarcastic and only posting or making fun of what is usually posted on here about anything being built in BR or d'town for that matter.

  2. Great news IRL fans: TURBO the IMS sanctioned movie about slugs running the Indy 500 has caught the Securities and Exchange Commission because Dreamworks had to take a $132MILLION write down...because the movie was such a flop. See, the Indy/IMS magic soiled another pair of drawers. Bwahahahahahaha! How's CARTOWN doing? HAHAHAHA...Indy is for losers.

  3. So disappointed in WIBC. This is the last straw to lose a good local morning program. I used to be able to rely on WIBC to give me good local information, news, weather and traffic on my 45 minute commute.Two incidents when I needed local, accurate information regarding severe weather were the first signs I could not now rely on WIBC. I work weekend 12 hour nights for a downtown hospital. This past winter when we had the worst snowfall in my 50 years of life, I came home on a Sunday morning, went to sleep (because I was to go back in Sunday night for another 12 hour shift), and woke up around 1 p.m. to a house with no electricity. I keep an old battery powered radio around and turned on WIBC to see what was going on with the winter storm and the roads and the power outage. Sigh. Only policital stuff. Not even a break in to update on the winter storm warning. The second weather incident occurred when I was driving home during a severe thunderstorm a few months ago. I had already gotten a call from my husband that a tornado warning was just southwest of where I had been. I turned to WIBC to find out what direction the storm was headed so I could figure out a route home, only to find Rush on the air, and again, no breaking away from this stupidity to give me information. Thank God for my phone, which gave me the warning that I was driving in an area where a tornado was seen. Thanks for nothing WIBC. Good luck to you, Steve! We need more of you and not the politics of hatred that WIBC wants to shove at us. Good thing I have Satellite radio.

  4. I read the retail roundup article and tried Burritos and Beers tonight. I'm glad I did, for the food was great. Fresh authentic Mexican food. Great seasoning on the carne asada. A must try!!! Thanks for sharing.

  5. John, unfortunately CTRWD wants to put the tank(s) right next to a nature preserve and at the southern entrance to Carmel off of Keystone. Not exactly the kind of message you want to send to residents and visitors (come see our tanks as you enter our city and we build stuff in nature preserves...

ADVERTISEMENT