Finish Line Comparable Store Sales Rise
23 September 2016 - 11:30PM
Dow Jones News
Finish Line Inc. on Friday said its comparable-store sales
increased in the latest quarter and said it would change the role
of its former chief executive more quickly than expected.
Shares of Finish Line jumped 5% to $25.20 in premarket trading
as results came in ahead of analysts' expectations.
The athletic retailer also said executive chairman and former
CEO Glenn Lyon would become nonexecutive chairman effective
immediately, a faster timetable than initially laid out. At the end
of February, Mr. Lyon stepped down as CEO after a bungled
warehouse-management system rollout. The company had originally
said Mr. Lyon would remain executive chairman through the end of
the year.
Sales at Finish Line stores open at least a year increased
5.1%.
"Our comparable store sales accelerated during the second
quarter," CEO Sam Sato said. "With our enhanced supply chain now
operating efficiently, our focus shifts to streamlining our
organizational structure to optimize productivity."
Indianapolis-based Finish Line, which has stores inside
struggling Macy's Inc. stores, has moved to shut locations while
ramping up its e-commerce capabilities. Its number of stand-alone
stores fell 5.6% to 585 during the period as its
store-within-a-store count fell 0.8% to 391 from the prior
year.
In all for the August quarter, the company reported a profit of
$22.1 million, or 53 cents a share, down from $25.9 million, or 57
cents a share, a year earlier.
As Finish Line repurchased 1 million shares during the quarter,
a 9% lower share count boosted per-share earnings.
Revenue grew 5.4% to $453.5 million.
Analysts polled by Thomson Reuters expected 53 cents in adjusted
earnings per share on $494.8 million in revenue.
The company reaffirmed its earnings and comparable store sales
outlook.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
September 23, 2016 09:15 ET (13:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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