IBJNews

Finish Line shares surge after jump in profit

Back to TopCommentsE-mailPrintBookmark and Share

Shares of The Finish Line Inc. vaulted nearly 9 percent Friday morning after the Indianapolis-based retailer reported a 6.1-percent jump in earnings for its fiscal second quarter on a 13.3-percent increase in sales.

The firm’s shares hit $24.35 just before noon, a 8.75-percent increase from their previous close.

For the quarter ended Aug. 31, Finish Line reported a profit of $26.5 million, or 54 cents a share, up from $25 million, or 49 cents a share, in the same quarter of 2012. Sales rose to $436 million.

The performance exceeded projections of analysts polled by Thomson Reuters, who predicted a per-share profit of 45 cents per share and revenue of $426 million.

Sales at stores open for more than a year were up almost 1 percent.

In a conference call with analysts Friday morning, CEO Glenn Lyons enthused about new products from apparel makers such as Nike, Adidas and Asics.

“It is clear that innovation is generating excitement in the marketplace and driving improved results in our business,” Lyons said.

He pointed to new Nike shoe brands such as its Flyknit Lunar and Flyknit Free, as well as Adidas’ Springblade, “which launched in early August is selling extremely well with a $180 price point.”

Sales of basketball shoes remained strong, with Nike's Jordan Brand and Signature series helping lead the way.

Nike, coincidentally, reported its latest quarterly numbers on Thursday. The Beaverton, Ore.-based company said its fiscal first-quarter net income totaled $780 million, or 86 cents per share, compared to $567 million, or 63 cents a share, in the same period a year ago. Revenue rose 8 percent, to $6.97 billion, from $6.47 billion in the same quarter last year.

Nike’s shares were up 5 percent in trading on Friday morning.

Finish Line has 658 stores in malls across the United States and manages the athletic footwear inventory in 660 Macy’s stores. The company also operates, through a venture with Gart Capital Partners, 39 specialty running shops in 11 states.

On Friday morning, Lyons also provided an update on the firm’s strategy to open branded shops within the shoe departments of Macy’s stores. He told analysts that the company expected to have 180 shops in operation by the end of October and ready for the holiday shopping season.

“We’re very pleased with the initial results and very excited about this strategic growth initiative,” Lyons said.

For the second half of the year, Finish Line will focus on licensed and branded fleece products, branded apparel for kids, and its expanded assortment of backpacks, Lyons said.

However, “our optimism for the back half of the year is somewhat tempered by the still-challenging retail environment,” he said.



 

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:
 
thisissue1-092914.jpg 092914

Subscribe to IBJ
  1. Cramer agrees...says don't buy it and sell it if you own it! Their "pay to play" cost is this issue. As long as they charge customers, they never will attain the critical mass needed to be a successful on company...Jim Cramer quote.

  2. My responses to some of the comments would include the following: 1. Our offer which included the forgiveness of debt (this is an immediate forgiveness and is not "spread over many years")represents debt that due to a reduction of interest rates in the economy arguably represents consideration together with the cash component of our offer that exceeds the $2.1 million apparently offered by another party. 2. The previous $2.1 million cash offer that was turned down by the CRC would have netted the CRC substantially less than $2.1 million. As a result even in hindsight the CRC was wise in turning down that offer. 3. With regard to "concerned Carmelite's" discussion of the previous financing Pedcor gave up $16.5 million in City debt in addition to the conveyance of the garage (appraised at $13 million)in exchange for the $22.5 million cash and debt obligations. The local media never discussed the $16.5 million in debt that we gave up which would show that we gave $29.5 million in value for the $23.5 million. 4.Pedcor would have been much happier if Brian was still operating his Deli and only made this offer as we believe that we can redevelop the building into something that will be better for the City and City Center where both Pedcor the citizens of Carmel have a large investment. Bruce Cordingley, President, Pedcor

  3. I've been looking for news on Corner Bakery, too, but there doesn't seem to be any info out there. I prefer them over Panera and Paradise so can't wait to see where they'll be!

  4. WGN actually is two channels: 1. WGN Chicago, seen only in Chicago (and parts of Canada) - this station is one of the flagship CW affiliates. 2. WGN America - a nationwide cable channel that doesn't carry any CW programming, and doesn't have local affiliates. (In addition, as WGN is owned by Tribune, just like WTTV, WTTK, and WXIN, I can't imagine they would do anything to help WISH.) In Indianapolis, CW programming is already seen on WTTV 4 and WTTK 29, and when CBS takes over those stations' main channels, the CW will move to a sub channel, such as 4.2 or 4.3 and 29.2 or 29.3. TBS is only a cable channel these days and does not affiliate with local stations. WISH could move the MyNetwork affiliation from WNDY 23 to WISH 8, but I am beginning to think they may prefer to put together their own lineup of syndicated programming instead. While much of it would be "reruns" from broadcast or cable, that's pretty much what the MyNetwork does these days anyway. So since WISH has the choice, they may want to customize their lineup by choosing programs that they feel will garner better ratings in this market.

  5. The Pedcor debt is from the CRC paying ~$23M for the Pedcor's parking garage at City Center that is apprased at $13M. Why did we pay over the top money for a private businesses parking? What did we get out of it? Pedcor got free parking for their apartment and business tenants. Pedcor now gets another building for free that taxpayers have ~$3M tied up in. This is NOT a win win for taxpayers. It is just a win for Pedcor who contributes heavily to the Friends of Jim Brainard. The campaign reports are on the Hamilton County website. http://www2.hamiltoncounty.in.gov/publicdocs/Campaign%20Finance%20Images/defaultfiles.asp?ARG1=Campaign Finance Images&ARG2=/Brainard, Jim

ADVERTISEMENT