Finish Line, Inc. (THE)(NASDAQ: FINL) was trading lower on Wednesday as the company posted worse-than-expected earnings and cut outlook for fiscal 2017. The footwear and apparel retailer said comparable-store sales just rose 0.7 percent in fiscal third quarter, far below analysts’ estimates of 7.4 percent growth.
Revenue rose 3 percent to $371.1 million in the quarter ended Nov.26, missing analysts’ estimates of $411.3 million. The company also missed its earnings estimate. It posted an adjusted loss of $0.24 per share, compared with a $0.44 loss a year earlier, but it is below analyst expectations of $0.18 per share losses.
“We are disappointed that our third-quarter sales and earnings fell short of our expectations. Steep declines in apparel and accessories offset a high-single-digit footwear comp gain and a 33% sales increase in our Macy's business.” Finish Line CEO Sam Sato said. Finish Line shares close 8.74 percent lower at $21 on Wednesday.
For fiscal forth quarter, the company cuts its adjusted earnings forecast to a range of 68 cents to 73 cents a share. Analysts had expected 95 cents a share. For the current year, the company see earnings per share ranging from $1.24 and $1.30, below analysts’ estimate of $1.53 per share.
“We are now fully benefiting 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.” Sato said.