IBJNews

Finish Line's second-quarter profit jumps to $16.8M

Back to TopCommentsE-mailPrintBookmark and Share

Indianapolis-based The Finish Line Inc. said Thursday that its second-quarter profit rose as it rebounded from a messy quarter a year earlier after the athletic shoe retailer sold its unsuccessful Man Alive hip-hop stores.

The company said it earned $16.8 million, or 31 cents per share, during the quarter that ended Aug. 28, after losing $874,000, or 2 cents per share, during the same period last year.

Revenue rose slightly to $301.1 million, from $298.7 million in 2009.

The loss a year earlier mostly resulted from exiting the street wear business in July 2009.

Sales at stores open at least a year—a key indicator for retailers because it excludes results from stores that open or close during the year—rose 2 percent, after declining 9.9 percent a year earlier.

The company ended the quarter with no interest-bearing debt and $253.7 million in cash and equivalents, up from $142.9 million a year earlier.

Like many of its peers, The Finish Line has gotten a boost from the growing popularity of so-called "toning shoes"—oddly shaped footwear with an unstable sole that throws off the user's balance, which manufacturers say help to burn calories, improve posture and firm up the buttocks, thighs and calves. As IBJ reported in August, investment bank Morgan Stanley estimates the shoes could generate $70 million in revenue for Finish Line in fiscal 2011, or about 6 percent of the company’s revenue.

The company also is "assessing growth opportunities outside of our core business," Chairman and CEO Glenn Lyon said in a prepared statement. 

Indeed, the chain is working on a three-part strategy for spending its accumulated cash: reinvesting in the core Finish Line business, returning funds to shareholders through higher dividends and share repurchases, and diversifying its business either with a new retail concept developed in-house or through acquisitions.

For the first half of this fiscal year, the company posted a profit of $30.5 million, or 56 cents per share, compared with a loss of $1.5 million, or 3 cents per share, during the first half of 2009. Revenue rose 4.5 percent to $583.5 million, from $557.8 million a year earlier.

Finish Line operates 667 stores in 47 states.

Its shares had risen 46 cents, or 3 percent, to close at $15.69 before the results were released. They fell $1.94, or 12.4 percent, to $13.75 in aftermarket trading.

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. This is still my favorite Mexican restaurant in town. What I do love about the new version is it is much quieter than the most recent version. TV's were off, the music wasn't too loud, and the wait staff were not hyperactive like they had been the past few times I had been there. I just wish they would bring back the MOLE for the enchiladas!

  2. Not a bad paper. There is a need for local community news and city government issues. Don't really need the owner's constant national political rants. We all know where they stand by now.

  3. What nice people. Menard should've known better than to team up with the guy who robbed and drove Conseco to ashes. I'm surprised Timothy Durham isn't involved in this.

  4. Hello, I am Maris Peters, currently living in Texas city, USA. I am a widow at the moment with three kids and i was stuck in a financial situation in August 2014 and i needed to refinance and pay my bills. I tried seeking loans from various loan Companies both private and corporate but never with success, and most banks declined my credit. But as God would have it, I was introduced to a Man of God a private loan lender who gave me a loan of $65,000USD and today am a business owner and my kids are doing well at the moment, if you must contact any firm or company with reference to securing a loan without collateral , no credit check, no co signer with just 2% interest rate and better repayment plans and schedule, please contact Mr William David. He doesn’t know that am doing this but am so happy now and i decided to let people know more about him and also i want God to bless him more.You can contact him through his email: Davidloanfirm@yahoo.com

  5. It is beyond me how anyone can think this was a "bad deal" for the state! If they could take the money back then, yes, but they can't! Protections were built in the agreement. Now, if they roll the roads up and take them away, I will agree that it was a bad deal. Otherwise, the only way to have paid for the infrastructure that was badly needed was for the state to issue bonds....that is a four letter synonym for debt folks!!

ADVERTISEMENT