Finish Line Q4 Profit Tops View, But Revenues Miss

(RTTNews) - Athletic shoes and apparel retailer Finish Line, Inc. (FINL) reported Friday a profit for the fourth quarter that increased from last year, reflecting higher margins and improved comparable store sales. Adjusted earnings per share topped analyst' expectations by two cents, while quarterly sales missed their estimates.

The company also provided earnings and comparable store sales growth guidance for the full-year 2015.

"Our strong fourth quarter performance represented a great finish to a transformative year. The successful execution of our consumer centric omni-channel strategy drove solid gains in our core business while growth initiatives contributed meaningfully to our record full year revenue and profits," Chairman and CEO Glenn Lyon said in a statement.

The Indianapolis, Indiana-based company reported net income of $43.0 million or $0.87 per share, higher than $34.33 million or $0.69 per share in the prior-year quarter.

Excluding impairment charges, adjusted net income for the quarter was $42.79 million or $0.87 per share, compared to $37.72 million or $0.76 per share in the year-ago quarter.

On average, 18 analysts polled by Thomson Reuters expected the company to report earnings of $0.85 per share for the quarter. Analysts' estimates typically exclude one-time items.

Consolidated net sales for the quarter increased 17.2 percent to $518.87 million from $442.68 million in the same quarter last year, but missed fourteen Wall Street analysts' consensus estimate of $529.35 million.

Finish Line's comparable store sales grew 6.3 percent.

Operating margin for the quarter improved 50 basis points to 12.9 percent from last year.

Looking ahead fiscal 2015, Finish Line expects adjusted earnings to increase in the high single to low double-digit range over fiscal 2014, on comparable store sales growth in the mid single digits. Street is currently looking for full-year 2015 earnings of $1.89 per share on annual sales of $1.86 billion.

"We have a clear vision for building on our strong market position through innovative product, superior service, and effective consumer engagements. With that vision and our strong team, we move forward optimistic about our near and long-term growth prospects," Lyon added.

FINL closed Thursday's regular trading session at $26.48, down $0.90 on a volume of 1.79 million shares. In the past 52-week period, the stock has been trading in a range of $17.95 to $28.86.