Finish Line misses by $0.20, beats on revs; guides FY18 EPS below consensus :
- Reports Q4 (Feb) earnings of $0.50 per share, excluding non-recurring items, $0.20 worse than the Capital IQ Consensus of $0.70; revenues fell 0.4% year/year to $557.5 mln vs the $544.88 mln Capital IQ Consensus.
- Finish Line comparable sales decreased 4.5%, slightly worse than expected.
- Finish Line Macy's sales increased 35%.
- Co issues downside guidance for FY18, sees EPS of $1.12-1.23 vs. $1.44 Capital IQ Consensus; comps up low single digits, roughly in-line.
- "Our fourth quarter earnings performance represented a disappointing finish to a challenging year financially for our company," said Sam Sato, Chief Executive Officer of Finish Line. "As elements of our footwear offering did not resonate with our customers as we expected and the overall retail environment in February became increasingly difficult, we made the decision to get more aggressive on pricing to be competitive and clear slow moving product. While this allowed us to end fiscal 2017 with clean inventory levels, it put significant pressure on fourth quarter product margins. We know we must improve the execution of our merchandise strategies to drive increased full price selling and fuel sustained comparable sales growth. At the same time, we are confident that the numerous operational improvements we made throughout the past year have created a more efficient company with a stronger foundation to support enhanced profitability and increased shareholder value over the long-term."
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