The Indianapolis-based retailer of athletic apparel posted earnings that exceeded analyst expectations, as profit and revenue both grew in the quarter ended May 30.
Reducing expenses and rejiggering inventory helped the Indianapolis-based retailer of athletic apparel finish a disappointing year with a strong kick.
Shares of The Finish Line Inc. tumbled by about 20 percent in trading Friday morning, after the Indianapolis-based company lowered its earning outlook.
Mark S. Landau, who had served as the company’s chief business development officer since January 2012, has resigned.
The Finish Line Inc. has acquired a chain of five stores in the Kansas City, Missouri, area through its subsidiary, the Running Specialty Group.
Shares of The Finish Line Inc., HHGregg Inc. and The Shoe Carnival Inc. all have lost value this year and are trailing major stock indexes by a wide margin.
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.
Sales at stores open at least a year climbed 5 percent, and the company’s website improvements and relationship with Macy’s also helped to drive profit.
The Finish Line Inc.’s 48-store specialty running chain has been stuck in neutral and unable to grind out a profit since its inception three years ago. But the Indianapolis-based athletics retailer thinks its Running Specialty Group is poised at least to break even this year after reporting small losses every year since 2011.
A jump in same-store sales and improvements to the sports-apparel retailer’s website helped the company report a better-than-expected profit in its fiscal fourth quarter.
Brick-and-mortar retailers experienced a rough holiday season, and the doldrums continued through January—fueling hand-wringing among investors and other observers over whether the Internet has permanently diminished the American shopping mall.
The company rebounded in its fiscal third quarter from a loss in the year-ago period, thanks in part to strong same-store sales and improvements in e-commerce sales.
Shares of The Finish Line Inc., HHGregg Inc. and Shoe Carnival Inc. have been on a tear this year, rebounding to outperform the major stock indexes and rising at least 40 percent in value through the first of December. By comparison, the S&P 500 has gained about 28 percent.