Finish Line misses by $0.06, misses on revs; guides Q4 EPS below consensus; comps increased +0.7% vs. high single digit guidance:
- Reports Q3 (Nov) loss of $0.24 per share, excluding non-recurring items, $0.06 worse than the Capital IQ Consensus of ($0.18); revenues fell 2.7% year/year to $371.7 mln vs the $411.33 mln Capital IQ Consensus.
- Finish Line comparable store sales increased 0.7% vs. high single digit guidance.
- Finish Line Macy's sales increased 33.2%.
- Co issues downside guidance for Q4, sees EPS of 0.68-0.73, excluding non-recurring items, vs. $0.95 Capital IQ Consensus Estimate.
- For the fourth quarter ending Feb 25, 2017, the company expects Finish Line comparable store sales to be down between 3%-5%.
- "We are disappointed that our third quarter sales and earnings fell short of our expectations," said Sam Sato, Chief Executive Officer of Finish Line. "Steep declines in apparel and accessories offset a high-single digit footwear comp gain and a 33% sales increase in our Macy's business. While we continue to work on narrowing our soft goods assortment and aligning our offering with customer demand, our primary focus remains on growing the cornerstones of the Company's foundation - our Finish Line footwear business and our partnership with Macy's - through enhanced customer engagement. At the same time, we are making progress developing a more efficient operating model that drives increased profitability and greater shareholder value over the long-term. We are now fully benefitting from our enhanced supply chain and are just beginning to realize the $6 million in annualized savings from our actions aimed at streamlining our organizational structure. Despite our recent underperformance, we remain confident in the strategic course we have set for the Finish Line."
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