September 29, 2013

Finish Line profits up in second quarter

Finish Line, a US-based retailer of athletic shoes, apparel and accessories, has reported rise in profits in second quarter, aided by higher comparable store sales.

By admin-demo

The company reported net income of $26.51m for the second quarter ended 31 August, as against $24.97m in the same quarter last year. Net sales for the quarter increased 13.3% to $436.03m, when compared to $385.01m in the corresponding period last year.

The chain’s gross profit increased to $146.34m from last year’s $134.55m while operating income grew to $42.87m from $39.5m a year.

Meanwhile, gross profit as a percentage of sales declined to 33.6% from 35% a year earlier, and operating income as a percentage of sales fell to 9.8% from last year’s 10.3%.

Commenting on the results, Finish Line chairman and chief executive officer Glenn Lyon said the combination of positive comparable sales and good expense control drove a 10% increase in earnings per share over last year.

"At the same time, we continued to make good progress building our business with Macy’s and growing our Running Specialty Group," Lyon said.

"Looking ahead, we are cognizant of the headwinds currently facing the retail industry and this has been incorporated into our near-term planning. We remain confident that our strategy to create a leading multi-divisional, omni-channel business will lead to sustainable sales and earnings growth and increased shareholder value over the long term."

Finish Line, a premium retailer of athletic shoes, apparel and accessories, operates 658 stores in malls across the US, manages the athletic footwear inventory in 660 Macy’s stores including 182 branded shops.

It also operates, through a venture with Gart Capital Partners, the Running Specialty Group, including 39 specialty running shops in 11 states and the District of Columbia under The Running Company, Run On!, Blue Mile and Boulder Running Company banners.