Finish Line Posts 3Q Profit Boosted By Tax Gain
INDIANAPOLIS (AP) ¿ The Finish Line Inc., a seller of athletic shoes and clothes, rose to a profit in the third quarter from a year-ago loss, helped by a big one-time tax gain.
Finish Line also controlled its expenses, managed inventory better and improved store operations as it navigated a cautious consumer spending environment, CEO Glenn Lyon said in a statement.
In the quarter that ended Nov. 28, Finish Line had a profit of $6.6 million, or 12 cents per share, compared with a loss of $8.8 million, or 16 cents per share, a year earlier. Its big one-time tax gain of $6.5 million was related to the termination of its plans to buy Genesco Inc., a shoe and hat retailer with brands such as Journeys, Hat World, Lids and others. Finish Line had proposed the $1.5 billion deal in June 2007 but it later fell apart.
Excluding items, the company broke even, beating analysts' average estimate for a loss of 9 cents per share. Revenue slipped 0.2 percent to $240.1 million from $240.6 million, also topping the $234 million expected by analysts polled by Thomson Reuters.Sales at stores open at least a year rose 1.7 percent during the quarter, Finish Line said. Sales at stores open at least a year is a key measure of retailer performance because it is not skewed by new store openings and closings. Shares of Finish Line, based in Indianapolis, rose 75 cents, or 7.5 percent, to $10.75 in after-hours trading Tuesday after the quarterly results were released. The stock closed the regular session up 17 cents at $10.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV