The Finish Line, Inc. reported that total net sales increased 2.7% to $281.5 million for the third fiscal quarter ended November 25 from $274.0 million in the year-ago period, but comp store sales declines across the board at the companys Finish Line nameplate prompted FINL to issue a warning that it would report a loss for the period. The retailer expects to post a loss in the range of six cents to eight cents per diluted share, compared to income of two cents per diluted share in Q3 last year.
| Finish Line Fiscal Third Quarter | ||||
| Comparable Store Sales Results | ||||
| Category | SEP | OCT | NOV | QTR |
| Footwear | -2.0% | -0.2% | -4.3% | -2.2% |
| Apparel/Access. | -5.3% | -10.3% | -9.7% | -8.4% |
| Total | -2.6% | -2.4% | -5.6% | -3.5% |
Total company comparable store net sales for Q3 declined 3.3% versus a 4.0% increase for the stand-alone Finish Line business last year. The retailer is now reporting comps for the acquired Man Alive business as well. Man Alive actually helped offset some of the comp sales decline at the Finish Line format, which posted a 3.5% decline for the quarter. Man Alive comps were up 3.1% for the third quarter.
At Finish Line, footwear comps were down 2.2% for the period versus a 4.7% comp increase in Q3 last year. Management said that the decrease was due primarily to a mid-single-digit decline in the womens business and a low-single-digit decline in the mens business. The kids segment increased in low-single-digits for the period. The womens decline was attributed to a decrease in performance footwear sales, but FINL was up against a stronger womens Shox business last year, which most would argue was really a fashion business. The mens decline was attributed to a weaker basketball business. The average selling price in footwear was up 3.6% for the quarter.
FINL said that lifestyle fashion athletic footwear continues to grow as a percentage of total sales. They pointed to womens boots, as well as Puma and Heelys as key contributors for these gains.
In softgoods, Finish Line saw comps fall 8.4% for the period on top of a 0.1% decline in Q3 last year. Management said that the weakness in softgoods was due primarily to a decline in branded accessories. The retailer did see an increase in collegiate licensed product sales in fleece and jackets.
At Man Alive, comps for November inched up 0.9% after a 1.6% gain in October and a 6.4% increase in September. The urban format saw increases in the mens apparel category and mens and juniors footwear, offset a bit by weakness in juniors apparel. The mens business was driven by strength in denim, all-over print hoodies, and track jackets. The juniors apparel business was hurt by significant weakness in outerwear. The Man Alive footwear business continued to show double-digit comp sales growth for the quarter.
>>> No real surprises here with the exception of the licensed apparel improvement. The weakness in mens basketball comes as Foot Locker reports improvements there so it may indicate more of a shift in the mall
