Finish Line Comps Down; Lifts Earnings View For Q4, FY18 - Quick Facts

(RTTNews) - Athletic retailer Finish Line, Inc. (FINL), which has agreed to be bought by JD Sports Fashion Plc (JD.L), announced Monday its preliminary fourth-quarter results, reporting consolidated net sales of $561.3 million for the 14 weeks, up 0.7% from last year's 13 weeks.

The sales growth was driven by an 8.5% increase in Finish Line Macy's sales largely offset by a 0.9% decrease in Finish Line sales. Fourth-quarter comparable sales for Finish Line decreased 7.9%.

The company now expects to report fourth-quarter earnings per share from continuing operations between $0.39 and $0.40 on a GAAP basis. Adjusted earnings per share from continuing operations are expected to be between $0.58 and $0.59 compared to the previous adjusted guidance range of $0.50 to $0.58.

Despite the flat sales, disciplined expense and inventory management helped offset top-line pressure.

For the 53-week fiscal 2018, consolidated net sales were $1.84 billion, down 0.3%. Comparable sales for Finish Line decreased 3.9%.

The company now expects full-year earnings per share from continuing operations to be between $0.35 and $0.36 on a GAAP basis. Adjusted earnings per share from continuing operations are expected to be between $0.68 and $0.69, compared to the previous adjusted guidance of $0.59 to $0.67.

On average, 16 analysts polled by Thomson Reuters expect earnings of $0.57 per share for the fourth quarter and $0.67 per share for the full year. Analysts' estimates typically exclude special items.

Sam Sato, Chief Executive Officer of Finish Line, said, "Fourth quarter comparable sales were more challenging than we expected. I'm pleased with how our team responded to the top-line headwinds by controlling inventories and expenses which we expect will deliver profitability at or above the high-end of our guidance range."

Finish Line now plans to report actual fourth quarter and fiscal year 2018 results on March 29 versus April 3 as previously announced.

Based on the announcement that Finish Line has agreed to merge with JD Sports, the company will not host a conference call and webcast in conjunction with its fourth quarter and fiscal year 2018 earnings report.