Finish Line (NASDAQ:FINL) revealed stronger-than-expected first-quarter earnings on Friday as tighter costs complimented robust revenue gains.
With sales for the three months ended June 1 increasing 10% to $351.1 million from $319 million a year ago, Finish Line CEO Glenn Lyon said the quarter was marked by the “well-received launch” of its Macy’s shops and the expansion of its running-wear business.
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The top-line figure topped Wall Street’s view of $344 million.
“We are pleased with the start to Fiscal 2014 as improving trends in our Finish Line running business combined with continued strength in basketball and disciplined expense management drove our results," Lyon said in a statement.
The Indianapolis-based athletic footwear and apparel retailer reported net income of $5.1 million, or 10 cents a share, compared with a year-earlier profit of $12.3 million, or 6 cents.
Excluding one-time items such as costs related to the launch of Macy's (NYSE:M) Finish Line shops, the company said it earned 10 cents a share, topping average analyst estimates of 16 cents in a Thomson Reuters poll.
For the year ending March 1, Finish Line sees earnings growing in the mid-single digit percent over fiscal 2013’s non-GAAP earnings per share of $1.47. Analysts on average are calling for full-year earnings of $1.56.
“We have clear vision and sound strategies in place to transform our company into a premier, multi-divisional, omni-channel retailer and drive increased value for our shareholders," he said.
Shares of Finish Line ticked about 1% higher to $21.40.