Shares of Finish Line Inc. slumped 1% in premarket trade, after the athletic shoe and apparel retailer matched fiscal first-quarter profit expectations, but reported a surprise decline in same-store sales. The net profit for the quarter to May 27 fell to $8.1 million, or 20 cents a share, from $9.6 million, or 23 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 23 cents, compared with the FactSet consensus of 23 cents. Revenue slipped to $429.8 million from $430.0 million, below the FactSet consensus of $434.0 million. Same-store sales declined 1.1%, while the FactSet consensus was for an increase of 1.6%. The company expects second-quarter same-store sales to decline in the "low-single digits" percentage range, compared with current expectations of 0.7% growth. "Following low-single digit comparable sales growth for the combined March/April period, weak traffic trends, and a difficult product launch comparison in May resulted in comps coming in below plan," said Chief Executive Sam Sato. The company affirmed its fiscal 2018 profit and same-store sales outlook. The stock had tumbled 32% year to date through Thursday, while the SPDR S&P Retail ETF has lost 11% and the S&P 500 has gained 8.7%.
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