Finish Line Posts Record Earnings In Two Straight Quarters

Indianapolis-based Finish Line has "reported record earnings in two straight quarters, with double-digit sales growth, and raised its profit forecasts for the rest of the fiscal year," pushing the company's stock over $25 this week, "levels not seen in five years," according to J.K. Wall of the INDIANAPOLIS STAR. Finish Line shares closed at $23.44 yesterday, down $0.81. N.Y.-based Fahnestock & Co. Dir of Research Bernie Sosnick said, "Finish Line had what was probably the best performance of any retailer during the spring season. That's a remarkable achievement, because it was a horrible spring season for most retailers." Wall notes that Finish Line has capitalized on the Nike-Foot Locker feud, and "jumped on a new wave in popularity of sports-related apparel." Finish Line "was reeling" last fall, when it downgraded profit forecasts and shares fell as low as $7.40, but when customers "returned to the malls in November," they found Nike's "top-of-the-line shoes only at Finish Line and Foot Action stores." Nike's decision to cancel $450M in orders to Foot Locker came "as it launched some of its hottest shoe models in years," and Finish Line's business "took off with them." Finish Line CEO Alan Cohen "stressed that sales of Reebok, Adidas and K-Swiss have also grown," adding that apparel sales "have seen 12 months of spectacular growth." Finish Line COO & CFO Steve Schneider: "The real kicker on it was ... the retro look. It's not like you're just bringing out the same Peyton Manning jersey every quarter" (INDIANAPOLIS STAR, 7/11).