Finish Line Shares Plummet After Fiscal Year Forecast, Shareholder Plan

Shares of Finish Line "plunged into negative territory on Tuesday after the company lowered its profit forecast for the year and adopted a shareholder rights plan" (FINANCE.YAHOO.com, 8/29). Shares of Finish Line at one point were "plunging" more than 28% this morning before the stock "regained some ground" (CNBC.com, 8/29). At presstime, shares of Finish Line were trading at $8.32, down 20.2% from the close of business yesterday (THE DAILY).

Analysts today said that a "lack of innovation" from Nike, Finish Line's chief supplier, is a "big reason the Indianapolis-based shoe and apparel retailer is experiencing swooning sales and a falling stock price" (IBJ.com, 8/29). CNBC's Jim Cramer said maybe Jordan Brand sneakers "aren't working" any longer, and despite the brand having "tremendous staying power, it seems to finally have run out." Cramer added that Nike "lacks a killer shoe and 71% of Finish Line is Nike" ("Squawk on the Street," CNBC, 8/29).