Finish Line Store Front

Finish Line Q3 Profit Slips

In Reports, What's New, Industry News by Accessories Staff

Finish Line Store FrontIndianapolis–Third quarter profit at athletic footwear and apparel retailer The Finish Line Inc. slipped 38% after higher sales were unable to offset the benefit of a tax gain last year.

Net income in the three months to November 27 fell to $4.1 million, or $0.08 per share, down from $6.6 million or $0.12 per share a year ago when the retailer’s results were lifted by a tax benefit of $6.4 million. Net sales rose 8.7% to $260.9 million, up from $240.1 million a year ago, according to Finish Line’s earnings report released Tuesday.

E-Commerce Picks Up

Same-store sales jumped 10% in the latest period, returning to double-digit percentage growth after a weak showing in the second quarter.

“We continue to exceed our internal performance targets, yet there is more growth to come within our existing business,” said¬† Glenn Lyon, chairman and ceo. “We believe that we can achieve annual double digit operating margins in the future by continuing to drive the top line in our stores and by accelerating growth in e-commerce, which will become an increasingly more significant factor in our business moving forward.”

In their conference call with retail analysts. company executives said they hope to improve margin by driving sales in stores and accelerating online-sales growth. Finish Line’s e-commerce business has “become an increasingly more significant factor in our business moving forward,” Lyon said, adding that online sales rose 25% in the quarter.

 

 

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