The Finish Line Inc. outran Wall Street again, reporting a strong second quarter.
For the period ended Aug. 31, the athletic footwear retailer reported a net income of $26.5 million, or 54 cents a share, beating analysts’ predictions for earnings of 45 cents a share. It was a 6.1 percent increase over the year-ago period for the Indianapolis-based firm.
Net sales also increased to $436 million, a 13.3 percent jump from the same period a year ago.
Executives in a conference call Friday morning credited the sales bump to the Finish Line stores that launched inside Macy’s Inc. locations starting this spring, and also to its expanding running division.
“We continued to make good progress building our business with Macy’s and growing our Running Specialty Group,” said Glenn Lyon, CEO of Finish Line. “We remain confident that our strategy to create a leading multidivisional, omnichannel business will lead to sustainable sales and earnings growth and increased shareholder value over the long term.”
The company also expressed confidence it will achieve low single-digit growth in comparative-store sales by the end of the year, and diluted earnings per share of $1.47.
The estimation is low compared with analysts’ expectation for EPS of $1.57. Executives attributed the conservative guidance to mall traffic, conversion rates and online retail challenges.