28 Mar Finish Line’s Q4 Earnings Climb 25 Percent
The Finish Line, Inc. reported earnings results for the fourth quarter and fiscal year 2014, representing the 13 and 52 weeks ended March 1, 2014.
Fourth Quarter Results:
- Consolidated net sales were $518.9 million, an increase of 17.2 percent over the prior year period.
- Finish Line comparable store sales increased 6.3 percent.
- On a GAAP basis, diluted earnings per share increased 26.1 percent over the prior year to $0.87.
- Non-GAAP diluted earnings per share, which excludes the impact of impairment charges and the gain on the sale of an investment, increased 14.5 percent to $0.87.
Fiscal Year Results:
- Consolidated net sales were a record $1.67 billion, an increase of 15.7 percent over the prior year.
- Finish Line comparable store sales increased 4.2 percent.
- On a GAAP basis, diluted earnings per share increased 11.4 percent over the prior year to $1.56.
- Non-GAAP diluted earnings per share, which excludes the impact of start up costs related to the launch of Macy’s business, impairment charges and the gain on the sale of an investment, increased 12.9 percent to $1.66.
“Our strong fourth quarter performance represented a great finish to a transformative year,” said Glenn Lyon, Chairman and Chief Executive Officer. “The successful execution of our consumer centric omni-channel strategy drove solid gains in our core business while growth initiatives contributed meaningfully to our record full year revenue and profits. We have a clear vision for building on our strong market position through innovative product, superior service, and effective consumer engagements. With that vision and our strong team, we move forward optimistic about our near and long-term growth prospects.”
Balance Sheet
As of March 1, 2014, consolidated merchandise inventories increased 24.8 percent to $304.2 million compared to $243.8 million as of March 2, 2013. The increase resulted primarily from the start-up of Macy’s business. For Finish Line, merchandise inventories increased 0.2 percent.
The company repurchased 200,000 shares of its common stock in the fourth quarter, totaling $5.1 million. For the full year, Finish Line repurchased 1.0 million shares totaling $22.6 million. The company has 3.9 million shares remaining on its current Board authorized repurchase plan.
As of March 1, 2014, the company had no interest-bearing debt and $229.1 million in cash and cash equivalents, compared to $227.0 million a year ago.
Outlook
For the fiscal year ending February 28, 2015, Finish Line expects comparable store sales to be up mid single digits and earnings per share to increase in the high single to low double digit range over fiscal year 2014 non-GAAP diluted earnings per share of $1.66.
