IBJNews

Strong holiday sales give Finish Line a boost

Back to TopCommentsE-mailPrintBookmark and Share

Indianapolis-based The Finish Line Inc. is getting an early Christmas present: strong holiday shopping sales.

The athletic shoe and apparel retailer said on Tuesday that sales at stores open more than a year rose 4.5 percent from Nov. 28 through Dec. 19 compared to the same period a year ago. Same-store sales is a key indicator for retailers because it excludes results from stores that open or close during the year.

Finish Line Chief Financial Officer Ed Wilhelm told IBJ the company is “pleased” and “encouraged” by its performance so far in December, but he declined to speculate on overall holiday shopping sales.

Profit in the third quarter, which ended Nov. 27, exceeded analysts’ expectations, hitting $4.1 million, or 8 cents per share, compared with $6.6 million, or 12 cents per share, a year ago. A tax benefit boosted the prior year's earnings by $6.4 million; without it, earnings per share would have been nearly flat.

Still, the drop in profit reflected on the company’s stock price, which quickly fell 5 percent to $17.85 in Wednesday morning trading.  

Revenue in the quarter rose 9 percent to $260.9 million from $240.1 million a year ago.

Analysts polled by Thomson Reuters had expected 5 cents per share on revenue of $249.1 million.

Wilhelm attributed the rise in quarterly revenue to several factors, including a 25-percent increase in online sales, more foot traffic in stores and a rise in the overall dollar amount per transaction.

“We continue to sell more product at full retail [price] with fewer markdowns,” he said.

Running shoes continue to drive revenue, though sales of basketball shoes provided a boost.

The launch of Reebok’s ZigTech Slash shoe, endorsed by Washington Wizards rookie John Wall, and another shoe by Under Armour, supported by Milwaukee Bucks point guard Brandon Jennings, helped lift sales of an otherwise challenging category.

Same-store sales for the entire quarter jumped 10.1 percent compared with an increase of 1.7 percent the same time a year ago.

Finish Line also reported having $222 million in cash at the end of the quarter, up from $149.2 million the same period last year, and no interest-bearing debt.

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.

Through three quarters of its fiscal year, Finish Line reported profit of $34.6 million, or 63 cents per share, compared with profit of $20 million, or 36 cents per share, including the tax benefit, in the year-ago period.

The retailer operates 669 stores in 47 states.

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. In reality, Lilly is maintaining profit by cutting costs such as Indiana/US citizen IT workers by a significant amount with their Tata Indian consulting connection, increasing Indian H1B's at Lillys Indiana locations significantly and offshoring to India high paying Indiana jobs to cut costs and increase profit at the expense of U.S. workers.

  2. I think perhaps there is legal precedence here in that the laws were intended for family farms, not pig processing plants on a huge scale. There has to be a way to squash this judges judgment and overrule her dumb judgement. Perhaps she should be required to live in one of those neighbors houses for a month next to the farm to see how she likes it. She is there to protect the people, not the corporations.

  3. http://www.omafra.gov.on.ca/english/engineer/facts/03-111.htm Corporate farms are not farms, they are indeed factories on a huge scale. The amount of waste and unhealthy smells are environmentally unsafe. If they want to do this, they should be forced to buy a boundary around their farm at a premium price to the homeowners and landowners that have to eat, sleep, and live in a cesspool of pig smells. Imagine living in a house that smells like a restroom all the time. Does the state really believe they should take the side of these corporate farms and not protect Indiana citizens. Perhaps justifiable they should force all the management of the farms to live on the farm itself and not live probably far away from there. Would be interesting to investigate the housing locations of those working at and managing the corporate farms.

  4. downtown in the same area as O'malia's. 350 E New York. Not sure that another one could survive. I agree a Target is needed d'town. Downtown Philly even had a 3 story Kmart for its downtown residents.

  5. Indy-area residents... most of you have no idea how AMAZING Aurelio's is. South of Chicago was a cool pizza place... but it pales in comparison to the heavenly thin crust Aurelio's pizza. Their deep dish is pretty good too. My waistline is expanding just thinking about this!

ADVERTISEMENT