Finish Line Inc. reported earnings declined 14.6 percent in its second quarter ended August 27, to $22.1 million, or 53 cents a share, in line with Wall Street’s consensus estimate. Finish Line comparable store sales increased 5.1 percent.

For the thirteen weeks ended August 27, 2016:

● Consolidated net sales were $509.4 million, an increase of 5.4 percent over the prior year period
● Finish Line comparable store sales increased 5.1 percent
● Diluted income per share was 53 cents.

“Following a solid start to the year, our comparable store sales accelerated during the second quarter,” said Sam Sato, CEO, Finish Line. “The combination of top-line growth and disciplined expense management allowed us to partially offset the planned gross margin pressure from our successful inventory reduction actions and deliver earnings in-line with expectations. With our enhanced supply chain now operating efficiently, our focus shifts to streamlining our organizational structure to optimize productivity, adapt more quickly to market changes and better serve our customers. I am pleased with how we continue to execute our plan for fiscal 2017 while at the same time taking the necessary steps to position the company for long-term profitable growth.”

Finish Line also announced the Board of Directors approved an updated timetable for Glenn Lyon’s transition to non-executive chairman of the board of directors, effective today.

“Throughout our multi-year succession plan, Glenn and Sam worked diligently to develop a seamless and effective transition plan leading us to today,” said Bill Carmichael, lead board director of Finish Line. “With their continued collaboration and a fully immersed leadership team focused on Finish Line’s growth and profitability, we reached this transition quicker than originally anticipated.”

Lyon added, “As I step into the exclusive role of non-executive chairman, I am confident that Sam and the entire executive leadership team have a clearly defined focus on excelling at the fundamentals that will drive results for our short- and long-term strategic initiatives.”

Balance Sheet
As of August 27, 2016, consolidated merchandise inventories increased 1.6 percent to $372.3 million compared to $366.3 million as of August 29, 2015.

The company repurchased 1.0 million shares of common stock in the second quarter, totaling $21.3 million. The company has 5.3 million shares remaining on its current board authorized repurchase program. As of August 27, 2016, the company had no interest-bearing debt and $114.3 million in cash and cash equivalents.

Outlook
For the fiscal year ending February 25, 2017, the company still expects Finish Line comparable store sales to increase in the 3 to 5 percent range and diluted earnings per share to be between $1.50 and $1.56.