Finish Line Warns On Q4, Cuts FY17 View After Q3 Net Loss Widens - Quick Facts

(RTTNews) - Finish Line, Inc. (FINL), a premium retailer of athletic shoes, apparel and accessories, on Wednesday said it expects fourth-quarter adjusted earnings per share from continuing operations between $0.68 and $0.73, and Finish Line comparable store sales to be down between 3%-5%.

On average, 20 analysts polled by Thomson Reuters expect earnings of $0.95 per share for the fourth quarter. Analysts' estimates typically exclude special items.

An expected tax refund delay shifting sales from the fourth quarter of fiscal year 2017 into the first quarter of fiscal year 2018 will reduce fourth quarter Finish Line comparable store sales by 2%-3% and earnings per share from continuing operations between $0.06 and $0.08.

For the fiscal year ending February 25, 2017, the company now expects adjusted earnings per share from continuing operations between $1.24 and $1.30, and Finish Line comparable store sales to range between flat to up 1%.

Previously, the company expected earnings per share to be between $1.50 and $1.56 and Finish Line comparable store sales to increase in the 3% to 5% range.

Analysts expect earnings of $1.53 per share for the year.

In the third quarter, the company's attributable net loss was $40.44 million or $1 per share, wider than loss of $21.84 million or $0.49 per share a year ago.

As a result of the company's process to explore strategic alternatives for the JackRabbit business, the results of JackRabbit have been reported within discontinued operations.

Loss from continuing operations was $10.59 million or $0.26 per share, compared to loss of $19.46 million or $0.44 per share last year.

Adjusted loss per share from continuing operations, which primarily excludes severance related charges, were $0.24. Analysts expected loss of $0.18 per share.

Consolidated net sales were $371.7 million, an increase of 3% over the prior year period's $361.03 million. Analysts expected sales of $411.31 million.

Finish Line comparable store sales increased 0.7%. Finish Line Macy's sales increased 33.2%.

Sam Sato, Chief Executive Officer of Finish Line, said, "We are disappointed that our third quarter sales and earnings fell short of our expectations. Steep declines in apparel and accessories offset a high-single digit footwear comp gain and a 33% sales increase in our Macy's business."

In pre-market activity, shares were losing 15.56 percent to trade at $19.43.