IBJNews

Cash-flush Finish Line likely to open new stores

Back to TopCommentsE-mailPrintBookmark and Share

Executives of The Finish Line Inc. have more than one reason to cheer the company’s fiscal third-quarter financials heading into the holidays.

On top of a small profit—its first in five quarters—the athletic retailer on Tuesday reported a growing balance sheet. The company ended the period with no interest-bearing debt and $149.2 million in cash and cash equivalents—up from $55.1 million a year ago.

Chief Financial Officer Ed Wilhelm said Tuesday that The Finish Line will use its improving financial position to likely open new stores next year and to improve its online shopping hub. The company plans to roll out the changes to its Web site by the end of February.

“It’s a growing part of our business,” Wilhelm said of the company’s online sales.

Indeed, Massachusetts-based Forrester Research projects U.S. online retail sales will rise 11 percent in 2009 to $156 billion.

Although the amount represents a small slide from last year’s growth of 13 percent, Forrester analyst Sucharita Mulpuru said in a report that retailers shouldn’t be alarmed given the poor economic conditions.

“Even as companies continue to struggle, the important takeaway is that the Web is continuing to grow,” said Mulpuru, who thinks growth in online sales will come at the expense of brick-and-mortar stores.

“It’s taking wallet-share away from the rest of the retail world.”

Wilhelm attributed The Finish Line’s increasing cash balance to the company’s conservative management style.

“We have a very strong balance sheet, which in today’s retailing world is an enviable position to be in,” he said.

Meanwhile, sales at Finish Line stores open at least a year—a key retail measure—increased 1.7 percent for the third quarter, compared to the same period last year; they had dropped 3.3 percent in 2008 for the year-ago period. Comparable-store sales climbed another 4.9 percent from Nov. 29 to Dec. 20 this year, the company said.

The rise in comparable-store sales through the first three weeks of December has company executives hopeful for a strong holiday sales season.

“We have our fingers crossed,” Wilhelm said.

The Finish Line operates 681 stores in 47 states.

Excluding a one-time tax benefit tied to its aborted merger with Nashville, Tenn.-based Genesco Inc., the company exceeded analysts’ expectations by reporting a fiscal third-quarter profit of $16,000.

Total net sales were down 0.2 percent, from $240.6 million a year ago to $240.1 million in the third quarter of 2009.

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. Hello Dear Are you tired of Seeking Loans and Mortgages,have you Been Turned down constantly By your banks and Other Financial Institutions or Micro Finance scheme. This is let you know with 100% guarantee that we Offer loans ranging from $1,000 Minimum to $1,000,000.00 Maximum at 3% interest rate per Month. We give out LOANS for developing business. a competitive edge/business expansion. email address: michealscottloan124@gmail.com We offer the following kinds of loans and many more; * Personal Loans ( Unsecured Loan) * Business Loans ( Unsecured Loan) * Consolidation Loan * Combination Loan * Home Improvement * Xmas Loans for contact to seek for loan email this email address: michealscottloan124@gmail.com Thanks

  2. My name is Mr Henry Josh and i live in the USA California and life is worth living right now for me and my family and all this is because of one man sent by GOD to help me and my family, i once had a life filled with sorrow because my first SON needed a kidney transplant and all our savings were going towards his medications and this normally leaves us with no money to pay our bills or even put enough food on our table and our rent was due and no funds to pay these bills and life felt so unfair to me and every night my wife will cry herself to sleep every night until one day, i was browsing through yahoo answers and i saw a striking advert of a man that gives out personal loans and that the offer is opened to all and i have heard so many things about internet scams but at this point of my life, i was very desperate and ready to take any risk and at the end of the day, i applied for this loan and from one step to another, i got my loan within 12 hours through bank transfer and you know, it was all like a dream and i called Mr Daniel Jones A Man who is the GOD sent lender i found and said, i have received my loan and he smiled stating that to GOD be the glory and i was so shocked as i have never ever seen anyone with such a GOD fearing and kind heart and today, i am the happiest man on earth because by GOD’S grace, my SON kidney transplant was successful and today he is healthy, i and my family are living very comfortable and happy and if you are in my former situation or in serious and legitimate need of a loan, you can reach this GOD sent lender via fidelityloanfirm@outlook.com

  3. Greetings to everyone reading this comment!!! I am Greg William by name. I am out here to recommend the effort of Mark Oscar,I was in need of a consolidation loan amount of 50,000 and as soon as I got in contact with Mark Oscar Loan Firm on Wednesday last week and on Friday last week as well I receive an alert from my bank(Royal Bank of Scotland Group) that the fund was transferred,I want everybody on this site to contact Mark Oscar now via email on how to get a loan because I got my loan from them and I am very happy,so contact them now. Oscarloanfinance@hotmail.com Thanks!!!!!!

  4. Elected officials, like Mourdock, get vested in 8 years. It takes 10 years for all other public employees, most of whom make a lot less money. So much for the promise to finish out his term.

  5. Great state treasurer and a good man!! Just curious if the folks who didn't quite understand his quote would like to tell my daughter-in-law that God didn't intend her! Mourdock's comment was correct but twisted and the article didn't mention that his opponent and the press let the impression stand that Mourdock meant that the rape was intended. Stupid people!!

ADVERTISEMENT