Finish Line Inc.’s first-quarter results revealed a retailer firing on all cylinders as total revenues, earnings and comparable-store sales all showed gains.
Net earnings jumped 28 percent to $13.7 million, or 30 cents per share, from $10.7 million, or 25 cents, in the prior year on sales that rose 9.1 percent to $443.4 million. Same-store sales increased 5.5 percent during the quarter.
Glenn Lyon, chairman and chief executive officer, said in a statement that the retailer is “delivering an enhanced customer experience with our commitment to offering latest and greatest merchandise assortments and providing world-class service.”
Lyon went on to say that the retailer “will continue to drive consistent growth and increased profitability across each of our divisions with focus on our customer-centric operating model.” By way of outlook, the retailer expects fiscal year same-store sales and earnings to show gains in the low- to midsingle digits.
Finish Line operates 1,020 stores in the U.S. as well as shops within Macy’s Inc. selling athletic shoes, apparel and related accessories.
In related industry news, the specialty retailer’s results come on the heels of Nike Inc.’s robust quarterly results last night. Nike’s said its futures orders (those that are scheduled for delivery by November) was $13.5 billion — 2 percent higher than a year ago, and 13 percent above the 2014 figure at constant currency.
Telsey Advisory Group analyst Kelly Chen said in a research note that “demand for Nike is strong and despite lapping tough comparisons from last year, it appears that the momentum will continue given the strong futures number.”
Chen added that as “mentioned in our preview, [currency exchange] remains a stiff headwind, but less so than before, and we expect [earnings per share] estimates to go up as forecasts adjust to reflect the favorability on other income and tax.”
Finish Line shares moved up 2.1 percent to $67.43 as the equity markets opened following the earnings report. Nike’s shares added 4.5 percent to move to $109.98 following the company’s fourth-quarter earnings and revenue “beat,” reported late Thursday. Earlier in the morning, they established a new all-time high of $110.29.
Other early-morning gainers included The Bon-Ton Stores Inc., ahead 4.8 percent at $5.39; Pacific Sunwear of California Inc., up 4.1 percent to $1.27, and Tilly’s Inc., up 2.6 percent to $9.97.
Stocks losing ground as the final day of the week began included Vince Holding Corp., off 3.4 percent to $12.56; Alibaba Group Holding Ltd., down 1.2 percent to $84.20, and Avon Products Inc., which fell 0.7 percent to $6.71.