Net income edged down 0.1% to $26.2 million for the 13 weeks to August 30. Net sales, however, increased 7.1% to $466.9 million from $436 million last year.
Analysts had recently expected per-share earnings of 60 cents and revenue of $478 million.
Comp store sales increased 1.5% in the period, compared with the 7% jump that larger rival Foot Locker Inc. posted last month. Sporting-apparel retailers have largely outperformed other retailers as consumers’ appetites for athletic apparel has grown.
“Our second quarter results fell short of our expectations due to softness within elements of our basketball offering while our running business was up mid single digits driven by casual and performance styles,” said Chairman/CEO Glenn Lyon. “We are confident that we can re-accelerate sales trends in basketball by working closely with our brand partners to improve our assortments. In combination with our market leadership position in running, advanced omnichannel capabilities and growing business relationship with Macy’s, this will fuel sustainable sales and earnings growth over the long-term.”
Gross margin narrowed to 33.2% from 33.6% as selling, general and administrative expenses rose 8.2% to $111.9 million. Finish Line’s cost of sales rose 7.6% to $311.8 million.
The company backed its earnings outlook for the year.