Finish Line Inc. (NASDAQ: FINL) shares fell more than 17 percent on Tuesday after the company reported disappointing second quarter results and lowered its annual profit forecast.
The sports good retailer said sales fell 3.3 percent to 469.4 million in the quarter ended Aug. 26. Comparable sales also fell as much as 4.6 percent.
The company also cut its full-year earnings guidance to be between 50 cents and 60 cents, down from its previous guidance of $1.12 to $1.23.
Finish Line shares fell as much as 17.85 percent to $8.58 in the early trading in New York. The stock has dropped more than 50 percent this year.
“We delivered earnings in-line with our expectations despite some unanticipated headwinds late in the quarter,” said Sam Sato, Chief Executive Officer of Finish Line. “Following low-single digit comparable sales growth for the combined March/April period, weak traffic trends, and a difficult product launch comparison in May resulted in comps coming in below plan. We offset pressure on our top-line and protected profitability with disciplined expense management resulting from the work we’ve done creating a more nimble and efficient organization.”
Other sports retailers’ shares also fell due to the news. Nike Inc. shares dropped 2.38 percent, Under Armour Inc. fell over 3 percent, while Dicks Sporting Goods Inc. also fell 1.71 percent.