The Finish Line plunges on wider Q3 loss
The Finish Line, Inc. (Nasdaq: FINL) shares are plummeting after the operator of mall-based shoe stores posted a third-quarter loss of $15.9 million, or $0.34 per share, worse than analyst estimates of losing $0.15 per share. A year earlier, the Indianapolis, Ind.-based firm posted a loss of $3 million, or $0.06 per share.
Quarterly revenue declined 4% to $268.7 million, lower than the consensus estimate of $271.09 million and from $280 million in the year-ago period.
Finish Line credited the results to lower sales and higher costs related to its ongoing $1.5 billion acquisition of smaller rival Genesco Inc., which has been plagued with legal entanglements.
In further negative news, Finish Line’s CEO Alan Cohen said in a morning conference call that comparable store sales are down in the mid-single digits so far during the fourth quarter.
In effort to turn things around, Finish Line said it’s implementing product and operating plans to improve results.
In morning trading, FINL shares are down 19.68%, or $0.44, at $1.77. Over the last 52 weeks, shares have ranged from $1.61 to $14.60.
