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Finish Line Plunges After Q2 Miss, Dodgy Guidance

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Finish Line Plunges After Q2 Miss, Dodgy Guidance
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Shares of Finish Line Inc (NASDAQ: FINL) plunged nearly 30 percent in pre-market trading Tuesday after the retail sportswear chain announced second-quarter net sales of $469 million, down 3.3 percent, and a 4.6-percent decline in comparable sales.

The stock closed at $10.42 Monday before nose-diving to $7.38 in aftermarket trading.

The retail sportswear chain said it expects to report earnings per share in the range of 8–12 cents.

“The marketplace for athletic footwear became much more promotional as our second quarter progressed resulting in challenging sales and gross margin trends,” CEO Sam Sato, said in a statement.

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Remainder Of Year Looks Bleak

Sales and gross margin trends remain challenging for the rest of the year, the company said. It expects comparable sales to fall 3–5 percent and adjusted earnings per share are now expected to be in the range of 50–60 cents.

“We believe it is prudent to adjust our outlook as we expect the environment to remain highly competitive and promotional throughout the remainder of the year,” Sato said. “In light of our disappointing second quarter results and revised projections for fiscal 2018, we will remain very disciplined in managing our expenses and inventories throughout the remainder of the year.”

Posted-In: Same SatoEarnings News Guidance Sports Movers General Best of Benzinga

 

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