When Finish Line Inc. (NASDAQ: FINL) reported its fiscal third-quarter financial results before the markets opened on Wednesday, the retailer posted a net loss of $0.24 per share and $371.7 million in revenue. The consensus estimates from Thomson Reuters called for a net loss of $0.18 per share and revenue $411.31 million. In the same period of last year, Finish Line reported a $0.49 per share net loss and $382.09 million in revenue.
Comparable store sales for the fiscal third quarter increased by 0.7% from last year. Finish Line Macy’s sales also increased by 33.2%.
During the quarter, the company repurchased 250,000 shares of common stock, totaling $5.8 million. The company has 5.0 million shares remaining on its current board authorized repurchase program. Finish Line has a total market cap of roughly $829 million.
In terms of the outlook for the fiscal fourth quarter, the company expects to see earnings in the range of $0.68 to $0.73 per share and comparable sales down between 3% and 5%. The consensus estimates are $0.95 in EPS and $597.56 million in revenue.
On the books, Finish Line cash and cash equivalents totaled $33.30 million at the end of the quarter, down from $55.27 million in the same period from last year.
Sam Sato, CEO of Finish Line, commented:
We are disappointed that our third quarter sales and earnings fell short of our expectations. Steep declines in apparel and accessories offset a high-single digit footwear comp gain and a 33% sales increase in our Macy’s business. While we continue to work on narrowing our soft goods assortment and aligning our offering with customer demand, our primary focus remains on growing the cornerstones of the Company’s foundation – our Finish Line footwear business and our partnership with Macy’s – through enhanced customer engagement. At the same time, we are making progress developing a more efficient operating model that drives increased profitability and greater shareholder value over the long-term. We are now fully benefitting from our enhanced supply chain and are just beginning to realize the $6 million in annualized savings from our actions aimed at streamlining our organizational structure. Despite our recent underperformance, we remain confident in the strategic course we have set for the Finish Line.
Shares of Finish line were trading down about 11% at $20.39 on Wednesday, with a consensus analyst price target of $23.45 and a 52-week trading range of $15.74 to $24.52.
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