LONDON, UK / ACCESSWIRE / September 27, 2016 / Active Wall St. announces its post-earnings coverage on Finish Line Inc. Earnings (NASDAQ: FINL). The company posted its second quarter fiscal 2017 results on September 23rd, 2016. The athletic retailer said its comparable-store sales increased 5.1%. The company also reported that it would change the role of its former chief executive more quickly than expected. The company reiterated its outlook for Fiscal 2017. Register with us now for your free membership at:
http://www.activewallst.com/register/.
Today, AWS is promoting its earnings coverage on FINL; touching on Macy's Inc. (NYSE: M). Get our free coverage by signing up to:
http://www.activewallst.com/registration-3/?symbol=FINL
http://www.activewallst.com/registration-3/?symbol=M
Earnings Reviewed
For the thirteen weeks ended on August 27th, 2016, Finish Line reported revenue of $509.4 million, 5.4% above the $483.1 million the company reported a year earlier, and also ahead of Wall Street's estimate of $495 million. The Indianapolis-based retailer posted net income of $22.1 million, or $0.53 per share, down from $25.9 million, or $0.57 per share, in the year-earlier period, matching the figure analyst expected.
The increase in Finish Line's net sales comprised of comparable sales that were up 5.1%, while sales associated with company's store inside Macy's Inc. came in at $77.4 million, up 27.3% compared to Q2 FY16. On the other hand, sales through its stores in JackRabbit declined slightly to $24.2 million. The drop in JackRabbit sales was attributable to the company's operating six less stores than a year ago period.
"Our comparable store sales accelerated during the second quarter," CEO Sam Sato said, "With our enhanced supply chain now operating efficiently, our focus shifts to streamlining our organizational structure to optimize productivity."
Margin Matters
During Q2 FY17, Finish Line's consolidated gross margin declined 170 basis points from a year ago to 31.3%. Product margin net of shrink decreased 200 basis points as the company worked through higher inventory levels caused in large part by the supply chain disruption.
Executive Transition
Finish Line announced that executive chairman and former CEO Glenn Lyon would become non-executive chairman effective immediately, a faster timetable than initially laid out. At the end of February, 2016, Mr. Lyon stepped down as CEO. The company had originally said Mr. Lyon would remain executive chairman through the end of the year.
Balance Sheet
As of August 27, 2016, Finish Line's consolidated merchandise inventories increased 1.6% to $372.3 million compared to $366.3 million as of August 29, 2015, with Finish Line and JackRabbit owned inventory both down at low single digits and Macy's inventory up by high single digits The company repurchased 1.0 million shares of common stock in Q2 FY17, totaling $21.3 million. The company has 5.3 million shares remaining on its current Board authorized repurchase program. As of August 27, 2016, Finish line had no interest-bearing debt and $114.3 million in cash and cash equivalents.
Stores
At the end of the reported quarter Finish Line number of stand-alone stores fell 5.6% to 585 including four openings and five closings. While the company's store-within-a-store count fell 0.8% to 391 Macy's stores branded shops. For JackRabbit, the company ended Q2 FY17 with 70 stores after closing one unprofitable store.
Outlook
For Fiscal 2017, Finish Line reaffirmed its target for comparable store sales to increase in the 3% to 5% range and diluted earnings to be between $1.50 per share and $1.56 per share.
Stock Performance
Finish Line's share price finished yesterday's trading session at $22.61, sliding slightly by 0.62%. A total volume of 1.92 million shares exchanged hands, which was higher than the 3 months average volume of 1.13 million shares. The stock has advanced 17.09% and 4.71% in the last three months and past six months, respectively. Furthermore, since the start of the year, shares of the company has surged 27.00%. The stock is trading at a PE ratio of 63.33 and has a dividend yield of 1.77%.
Active Wall Street:
Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
AWS has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email [email protected]. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: [email protected]
Phone number: 1-858-257-3144
Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Active Wall Street