Retail

Finish Line Tops Estimates, but Outlook Is Soft

Paul Ausick

Published: March 24, 2016 7:40 am

Last Updated: January 13, 2020 11:35 am

Finish Line Inc. (NASDAQ: FINL) reported fourth-quarter and full-year 2015 results before markets opened Thursday. The athletic shoe and apparel retailer reported quarterly diluted earnings per share (EPS) of $0.83 on revenues of $580.3 million. In the same period a year ago, Finish Line reported EPS of $0.88 on revenue of $551.35 million. Third-quarter results also compare to the consensus estimates for EPS of $0.80 and $567.85 million in revenue.

For the year, Finish Line reported EPS of $1.21 and revenues of $1.89 billion, compared with EPS of $1.67 and revenues of $1.82 billion in 2014. Analysts had estimated EPS of $1.19 and revenues of $1.88 billion.

The company recorded $52.8 million in non-GAAP adjustments, of which $51 million was non-cash. These adjustments primarily consisted of a $33.3 million write-off of technology assets. The remaining $19.5 million was primarily related to store impairment charges.

Same-store sales for the quarter rose 4.6% and full-year same-store sales rose 1.8%.

CEO Sam Sato said:

We worked diligently to improve digital fulfillment rates and flow new inventory to our stores during the fourth quarter which helped us achieve a mid-single digit comparable sales increase and adjusted earnings per share at the high-end of our guidance range. In addition to achieving optimal performance from our supply chain, our top priorities are continuing to bolster our vendor relationships and fortifying the foundational strengths of the company through new leadership and improved processes. I am confident that elevating our execution across the organization will result in an enhanced customer experience and drive profitable growth and increased shareholder value over the long-term.

For fiscal year 2017, Finish Line expects comparable store sales to increase in the 3% to 5% range and EPS in a range of $1.50 to $1.56. Analysts had forecast EPS of $1.70 and revenues of $1.93 billion.

Shares traded down 1% in Thursday’s premarket session, at $18.75 in a 52-week range of $15.37 to $29.05. Thomson Reuters had a consensus analyst price target of $20.42 before the results were announced.