Indianapolis-based Finish Line Inc. reported third quarter earnings that showed some gains in sales, but a profit miss.
The retailer said net income for the quarter was $2.5 million, or 5 cents per diluted share. Though it rose slightly compared to the year-ago period, diluted share earnings were flat on a GAAP-basis.
On an adjusted basis, per-share losses were 2 cents. Analysts had expected the company to earn 1 cent per share.
Net sales were $395.8 million for the quarter ended Nov. 29. It was an 8.5 percent increase from the year ago period when the company’s sales were $364.5 million.
The company also had solid comps, which were up 4.5 percent in the quarter.
“Third quarter comparable sales rebounded from second quarter trends, however merchandise margin pressure kept us from achieving our profitability plan,” said Glenn Lyon, Chairman and CEO in a statement. “We remain confident in the strategic course we have set for the company and we’ll continue to invest in the omnichannel initiatives focused on delivering the long-term financial goals we have previously outlined. That said, we are adjusting our near-term capital spending plans and creating a more flexible expense structure to protect profitability until stronger full-price selling trends reemerge.”
Update: Finish Line shares fell nearly 20 percent on Friday on the news as footwear stocks in general had a down day.