Finish Line Boosts 2013 Outlook As Q3 Results Top Estimates

(RTTNews) - Athletic shoes and apparel retailer Finish Line, Inc. reported Friday a profit for the third quarter compared to a loss last year, reflecting lower expenses and improved comparable store sales. Both adjusted earnings per share and quarterly sales topped analyst' expectations.

The company also raised its earnings guidance for the full-year 2013 above current Street view. Following the rosy guidance, the company's shares are trading up more than seven percent in early deals.

"We are very pleased with the top and bottom line performance we delivered in the third quarter. Our commitment to developing a premier omni-channel platform is strengthening both our customer relationships and our brand partnerships while also reinforcing our market leadership position," Chairman and CEO Glenn Lyon said in a statement.

The Indianapolis, Indiana-based company reported net income of $2.32 million or $0.05 per share, compared to a net loss of $0.11 million or breakeven per share in the prior-year quarter.

Excluding impairment charges, adjusted net income for the latest quarter was $2.83 million or $0.06 per share.

On average, 17 analysts polled by Thomson Reuters expected earnings of $0.01 per share for the quarter. Analysts' estimates typically exclude one-time items.

Consolidated net sales for the quarter increased 22.9 percent to $364.46 million from $296.62 million in the same quarter last year, and topped thirteen Wall Street analysts' consensus estimate of $354.57 million.

Finish Line's comparable store sales grew 7.1 percent

Gross profit for the quarter contracted 70 basis points to 29.6 percent, while selling, general and administrative expenses, as a percentage of sales, declined 220 basis points to 28.6 percent from last year.

Looking ahead fiscal 2014, Finish Line raised ts earnings adjusted guidance to a range of $1.60 to $1.65 per share, a year-over-year growth of 9 to 12 percent, from the prior forecast for earnings to increase in the mid-single digits over the $1.47 per share reported in fiscal 2013. Street is currently looking for full-year 2013 earnings of $1.59 per share.

The company now sees comparable-store sales to grow about 3 to 4 percent, compared to the previous expectation for a low single digit increase.

"We are continually adapting and refining our strategies in this rapidly evolving retail landscape to ensure we meet the needs of today's empowered consumer. Finish Line is on the right strategic course and is well-positioned to deliver on our near and longer term goals," Lyon added.

FINL closed Thursday's regular trading session at $26.14, down $0.45 on a volume of 1.06 million shares.