Finish Line Inc (NASDAQ:FINL) posted financial numbers for the thirteen weeks closed August 26, 2017. Consolidated net sales came at $469.4 million, a drop of 3.3% over the preceding year period. Comparable store sales dropped 4.5% while Macy’s sales jumped 5.6%.
Sam Sato, the CEO of Finish Line, expressed that their second quarter report was shaped by an extremely promotional marketplace for athletic footwear. With industry challenges weighing on their margin trends and sales, they remain disciplined in managing their inventories and expenses.
While they are preparing for a tough retail environment in the short-term, they are confident that the digital, in-store, operational and merchandise initiatives currently in place will enable them to achieve their current full year outlook and position the firm to achieve increased shareholder value in the imminent period.
The consolidated merchandise inventories came at $308.1 million as of close of August 26, 2017, as against $346.4 million in the same period, a year earlier. Finish Line reported no interest-bearing debt and cash and cash equivalents of $114.9 million. The firm’s outlook remains unaffected from the update released August 28, 2017 which is company’s comparable sales to drop 3% to 5% compared to its previous projection for a jump in the low-single digit range.
Adjusted EPS is now anticipated to be in the range of $0.50 – $0.60 for the 53-week fiscal year closing March 3, 2018, compared to the previous projection range of $1.12 – $1.23, and compared with adjusted EPS of $1.06 for the fiscal year closed February 25, 2017. The firm projects that the additional week in this fiscal year will contribute around $0.06 per share to Q4 2018 and FY2018 results.
In the last trading session, the stock of Finish Line jumped more than 5% to close the day at $9.73. The gains came at a share volume of 13.61 million compared to average share volume of 3.45 million.