CEO disappointed with Finish Line Q3 2017 results
Consolidated net sales were $371.7 million, an increase of 3.0% over the prior year period. Finish Line comparable store sales increased 0.7%.
Finish Line Macy’s sales increased 33.2%. On a GAAP basis, diluted loss per share from continuing operations were $(0.26).
Non-GAAP diluted loss per share from continuing operations, which primarily excludes severance related charges, were $(0.24).
As a result of the company’s process to explore strategic alternatives for the JackRabbit business, the results of JackRabbit have been reported within discontinued operations.
"We are disappointed that our third quarter sales and earnings fell short of our expectations,” said Sam Sato, chief executive officer of Finish Line.
"Steep declines in apparel and accessories offset a high-single digit footwear comp gain and a 33% sales increase in our Macy’s business.
"While we continue to work on narrowing our soft goods assortment and aligning our offering with customer demand, our primary focus remains on growing the cornerstones of the Company’s foundation - our Finish Line footwear business and our partnership with Macy’s - through enhanced customer engagement.
"At the same time, we are making progress developing a more efficient operating model that drives increased profitability and greater shareholder value over the long-term.
"We are now fully benefitting from our enhanced supply chain and are just beginning to realize the $6 million in annualized savings from our actions aimed at streamlining our organizational structure.
"Despite our recent underperformance, we remain confident in the strategic course we have set for the Finish Line." ■
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