Sales Lift Finish Line’s Q4 Profit

To kick off March Madness this month, Finish Line offered

To kick off March Madness this month, Finish Line offered shoppers a contest to predict winners of the NCAA basketball tournament.

Indianapolis—Online and comparable store improvements helped Finish Line report today a 27.7% jump in its fourth quarter profit, marking the end to its “transformative” year.

For the quarter ended March 1, the sports-oriented footwear, apparel and accessories retailer posted a net profit of $43 million, or 87 cents a share, compared with $34.3 million, or 69 cents a share, in the year-ago period. That beat analysts’ estimate by 2 cents.

Successful Omnichannel Strategy

Net revenue was up 17% to $518.9 million, falling short of analysts’ consensus for $529 million in sales. Comparable store sales increased 6.3%.

For its 2013 totals, Finish Line saw net income rise 8.5% to $75.1 million, while net sales grew 15.7% to $1.67 billion.

“Our strong fourth quarter performance represented a great finish to a transformative year,” said Glenn Lyon, chairman/ceo. “The successful execution of our consumer-centric omnichannel 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.”

Looking ahead to its current fiscal year, Finish Line expects comp store sales to rise in the mid-single digits with per-share earnings growth in the high single digits to low double digits. Analysts’ projected an 11% increase.

 

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Jeff Prine, Editor at Large, Accessories Magazine
Jeff returns as a regular contributor to Accessories magazine. Initially Jeff worked as senior editor at Accessories more than 20 years ago and his love of the industry has followed him until present. Since his tenure here, Jeff has continued to report jewelry, watch and other luxury goods trends as executive editor at Modern Jeweler magazine, fashion director at Lustre, and as contributor on products and trends for consumer and trade publications and websites. In addition to his editorial experience, Jeff also served as an adjunct instructor for accessories merchandising at Fashion Institute of Technology. jeffp@busjour.com