Shares in The Finish Line Inc. dropped as much as 12 percent Friday morning after the company reported second-quarter earnings and revenue that fell short of analyst expectations.
The Indianapolis-based athletic apparel retail chain posted profit of $26.2 million, or 54 cents per share, in the fiscal period ended Aug. 30, compared with profit of $26.5 million, or 54 cents, in the same quarter of 2013.
Revenue rose 7.1 percent over the year-ago period, to $466.9 million.
Analysts were expecting profit of 60 cents per share on revenue of $477.6 million.
Finish Line stock fell as much as 12 percent, to $25.86 per share, the biggest intraday decline since March 2012. Finish Line shares had climbed 4.4 percent this year before Friday.
Same-store sales, a figure that considers stores open at least a year, rose 1.5 percent.
Finish Line CEO Glenn Lyon said a disappointing mix of products in the basketball shoe category hurt sales in the second quarter.
“Needless to say, we’re disappointed on our second quarter performance,” he said in an earnings conference call. “We’ve been working diligently with our brand partners to improve our assortments in basketball as well as to continue to elevate our leadership position in running to get sales back in line.”
While Finish Line reiterated its full-year forecast, the results spurred fresh concerns about the footwear market. Skechers Inc. shares dropped almost 10 percent earlier this week after analysts suggested that sales were slowing.
Nike Inc., the world’s largest sporting-goods maker, reported first-quarter profit Thursday that exceeded analyst’s estimates. The company said it saw particular strength in performance categories, including basketball and running merchandise.