Market Overview

Finish Line Announces Preliminary Fourth Quarter and Fiscal 2018 Results

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The Finish Line, Inc. (NASDAQ:FINL) today announced preliminary results
for the fourth quarter and fiscal year 2018. The company's fiscal 2018
ended on March 3, 2018, reflecting a 14-week fourth quarter and 53-week
year, compared to the 13-week and 52-week periods in fiscal 2017.

For the 14-week fourth quarter, consolidated net sales were $561.3
million, up 0.7% compared with the 13-week period last year 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. Excluding adjustments detailed in the following
table, 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% compared with the 52-week fiscal 2017 driven by a 1.9%
decrease in Finish Line sales, partially offset by a 7.5% increase in
Finish Line Macy's sales. Full year 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. Excluding adjustments detailed in the following table, 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.

"Fourth quarter comparable sales were more challenging than we
expected," said Sam Sato, Chief Executive Officer of Finish Line. "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, 2018 versus April 3, 2018 as previously
announced. Based on today's 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.

       

Reconciliation of Diluted Earnings Per Share From Continuing
Operations Outlook, GAAP to Diluted Earnings Per Share from
Continuing Operations Outlook, Non-GAAP (Unaudited)

 
Fourteen Weeks Ended

March 3, 2018

Fifty-Three Weeks Ended

March 3, 2018

Diluted earnings per share from continuing operations, GAAP $0.39 to $0.40 $0.35 to $0.36
Impairment charges and store closing costs1 $0.43 to $0.44 $0.57 to $0.58
Revaluation of deferred tax liability as a result of tax reform
enactment2

($0.24) to ($0.25)

($0.24) to ($0.25)

Diluted earnings per share from continuing operations, Non-GAAP $0.58 to $0.59 $0.68 to $0.69
 

Notes:

1

  Estimated charges primarily represent write-off of long-lived assets
of underperforming stores and technology assets no longer used by
the Company.
2 Amount represents the Company's current estimate for the
remeasurement of the Company's deferred tax liabilities due to the
United States tax reform legislation enacted December 22, 2017.
 

About The Finish Line, Inc.

The Finish Line, Inc. is a premium retailer that carries the latest and
greatest shoes, apparel and accessories. Headquartered in Indianapolis,
Finish Line runs approximately 930 branded locations in U.S. malls and
shops inside Macy's department stores. Finish Line employs approximately
13,000 associates who connect customers to sneaker culture through style
and sport. Shop online at www.finishline.com
or get access to everything on the Finish Line app. Also keep track of
what's fresh by following Finish Line on Instagram,
Snapchat and Twitter.

Disclosure Regarding Non-GAAP Measures

This report refers to certain financial measures that are identified as
non-GAAP. The company believes that these non-GAAP measures are helpful
to investors because they allow for a more direct comparison of the
company's year-over-year performance and are useful in assessing the
company's progress in achieving its long-term financial objectives. This
supplemental information should not be considered in isolation or as a
substitute for the related GAAP measures. A reconciliation of the
non-GAAP measures to the comparable GAAP measures can be found above.

Forward-Looking Statements

Statements in this press release regarding the proposed transaction
between Finish Line and JD Sports Fashion Plc (JD), the expected
timetable for completing the proposed transaction, and the potential
benefits created by the proposed transaction are intended to be covered
by the safe harbor for "forward-looking statements" provided by the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements generally can be identified by use of statements that
include, but are not limited to, phrases such as "believe," "expect,"
"future," "anticipate," "intend," "plan," "foresee," "may," "should,"
"will," "estimates," "potential," "continue," or other similar words or
phrases. Similarly, statements that describe objectives, plans, or goals
also are forward-looking statements. Such forward-looking statements
involve inherent risks and uncertainties, many of which are difficult to
predict and are generally beyond the control of Finish Line or JD.
Finish Line cautions readers that a number of important factors could
cause actual results to differ materially from those expressed in,
implied, or projected by such forward-looking statements. Risks and
uncertainties include, but are not limited to: the failure of the
proposed transaction to close in a timely manner or at all; the effects
of the announcement or pendency of the proposed transaction on the
Company and its business; the nature, cost, and outcome of any
litigation related to the proposed transaction; general economic
conditions; Finish Line's reliance on a few key vendors for a majority
of its merchandise purchases (including a significant portion from one
key vendor); the availability and timely receipt of products; the
ability to timely fulfill and ship products to customers; fluctuations
in oil prices causing changes in gasoline and energy prices, resulting
in changes in consumer spending as well as increases in utility,
freight, and product costs; product demand and market acceptance risks;
the inability to locate and obtain or retain acceptable lease terms for
the company's stores; the effect of competitive products and pricing;
loss of key employees; cybersecurity risks, including breach of customer
data; the potential impact of legal or regulatory changes, including the
impact of the U.S. Tax Cuts and Jobs Act of 2017; interest rate levels;
the impact of inflation; a major failure of technology and information
systems; and the other risks detailed in Finish Line's Securities and
Exchange Commission (SEC) filings. Readers are urged to consider these
factors carefully in evaluating the forward-looking statements.
Investors and shareholders are also urged to read the risk factors set
forth in the proxy statement carefully when they are available.

If any of these risks or uncertainties materializes or if any of the
assumptions underlying such forward-looking statements proves to be
incorrect, the developments and future events concerning Finish Line and
JD set forth in this press release may differ materially from those
expressed or implied by these forward-looking statements. You are
cautioned not to place undue reliance on these statements, which speak
only as of the date of this document. We anticipate that subsequent
events and developments will cause our expectations and beliefs to
change. Finish Line assumes no obligation to update such forward-looking
statements to reflect events or circumstances after the date of this
document or to reflect the occurrence of unanticipated events, unless
obligated to do so under the federal securities laws.

Additional Information for Shareholders

This communication relates to the proposed merger between Finish Line
and JD. The proposed merger will be submitted to Finish Line's and JD's
shareholders for their consideration and approval. In connection with
the proposed merger, Finish Line and JD will file relevant materials
with (i) the SEC, including a proxy statement of Finish Line, and (ii)
the United Kingdom Listing Authority (UKLA) in the U.K., including a
circular of JD. When completed, a definitive proxy statement and a form
of proxy will be mailed to the shareholders of Finish Line, and a
circular will be mailed to the shareholders of JD. This communication is
not a substitute for the proxy statement, circular, or other document(s)
that Finish Line and/or JD may file with the SEC or the UKLA in
connection with the proposed transaction. Finish Line's and JD's
shareholders are urged to read the proxy statement and other documents
filed with the SEC and the U.K. circular regarding the proposed merger
transaction when they become available because they will contain
important information about Finish Line, JD, and the proposed merger
transaction itself.
Finish Line's shareholders will be able to
obtain, without charge, a copy of the proxy statement (when available)
and other relevant documents filed with the SEC from the SEC's website
at www.sec.gov.
Finish Line's shareholders also will be able to obtain, without charge,
a copy of the proxy statement and other relevant documents (when
available) by directing a request by mail or telephone to Finish Line,
Inc., 3308 N. Mitthoeffer Road, Indianapolis, Indiana 46235, Attention:
Corporate Secretary, or by calling (317) 899-1022, or from Finish Line's
website at www.finishline.com
under "Investor Relations – Financials & SEC Filings." The information
available through Finish Line's website is not and shall not be deemed
part of this document or incorporated by reference into other filings
Finish Line makes with the SEC. This communication does not constitute
an offer to sell or the solicitation of an offer to buy any securities.

Finish Line, JD, and their respective directors and certain of their
officers may be deemed to be participants in the solicitation of proxies
from Finish Line's shareholders with respect to the special meeting of
shareholders that will be held to consider the matters to be approved by
Finish Line's shareholders in connection with the merger transaction.
Information about Finish Line's directors and executive officers and
their ownership of Finish Line's common stock is set forth in the proxy
statement for Finish Line's 2017 annual meeting of shareholders, as
filed with the SEC on Schedule 14A on June 2, 2017. Shareholders may
obtain additional information regarding the interests of Finish Line and
its directors and executive officers in the proposed merger, which may
be different than those of Finish Line's shareholders generally, by
reading the proxy statement and other relevant documents regarding the
proposed merger, when filed with the SEC.

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