28 Sep Finish Line’s Q2 Earnings Show Modest Decline
Finish Line Inc. reported earnings slid 1.1 percent in the second quarter ended Aug. 29, to $25.9 million, or 57 cents a share, matching Wall Street’s consensus estimate.
For the thirteen weeks ended August 29, 2015:
- Consolidated net sales were $483.2 million, an increase of 3.5 percent over the prior year period.
- Finish Line comparable store sales increased 1.5 percent.
- Diluted earnings per share increased to $0.57 from $0.54 in the prior year.
“We are pleased with the bottom line performance we achieved on modest sales growth,” said Glenn Lyon, Chairman and Chief Executive Officer of Finish Line. “With our new supply chain system now live, we have accomplished a critical milestone which elevates our customer service levels even higher while driving efficiencies throughout our organization. The combination of our enhanced infrastructure and strong vendor partnerships has us well positioned to deliver the latest and greatest merchandise assortments our customers will be looking for this holiday season and beyond.”
As of August 29, 2015, consolidated merchandise inventories increased 11.0 percent to $366.3 million compared to $329.9 million as of August 30, 2014. The increase in inventories was driven primarily by higher receipts to support projected sales gains in September which benefited from the later Labor Day compared with last year.
The company repurchased approximately 167,000 shares of common stock in the second quarter, totaling $4.6 million. The company has 4.8 million shares remaining on its current Board authorized repurchase program.
As of August 29, 2015, the company had no interest-bearing debt and $100.2 million in cash and cash equivalents.
For the fiscal year ending February 27, 2016, the company still expects comparable store sales to be up in the low single to mid single digit range and earnings per share to increase in the low single to mid single digit range over fiscal year 2015 non-GAAP diluted earnings per share of $1.67.
Finish Line also operates the Running Specialty Group. This includes 76 specialty running stores in 17 states and the District of Columbia under the JackRabbit, The Running Company, Run On!, Blue Mile, Boulder Running Company, Roncker’s Running Spot, Running Fit, VA Runner, Capital RunWalk, Richmond RoadRunner, Garry Gribble’s Running Sports, Run Colorado, Raleigh Running Outfitters, Striders and Indiana Running Company banners.