Shares of the athletic shoe retailer Finish Line (FINL) were sinking over 7.45% to $10.19 during Monday morning trading following a downgrade of the stock at UBS to "Sell" from "Neutral" with a $9 price target.
Similar structural risks revealed in Foot Locker's (FL) - Get Report second quarter report last week could negatively impact Finish Line even more, UBS analyst Michael Binetti wrote in a note to clients obtained by TheFly.
Last week, Foot Locker CEO Dick Johnson said the company would close more stores than expected this year and gave a grim outlook regarding comparable sales.
Consequently, Binetti sees the risk of an accelerated decline in Finish Line's core mid- and lower tier markets, compared to those of Foot Locker. He additionally suggested the company could be challenged with lower gross margins.
Shares of Finish Line are lower over 41% year-to-date.
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