The Finish Line Reports Large Third Quarter Loss

The Finish Line on Thursday reported a “larger-than-expected third-quarter loss” after “struggling with slowing sales of athletic wear and costs linked to a legal fight over the acquisition of Genesco,” according to Erika Smith of the INDIANAPOLIS STAR. The Finish Line said that it lost $15.9M, or $0.34 a share, compared with a loss of $3M, or $0.06 a share, in the year-ago period. Revenue fell 4% to $268.7M, compared to $280M for the third quarter last year. For the '07 fiscal year, the company has reported a loss of $21.6M, or $0.46 a share, compared with a $11.3M, or $0.24 a share loss in the first three quarters of '06. Finish Line CEO Alan Cohen said in a statement, “We are implementing both operating and product initiatives to drive improvements in our business. Our customers are responding well to the new brands that we've recently introduced. Going forward, we see growth opportunities in both performance and sport style product” (INDIANAPOLIS STAR, 1/4). At presstime, shares of The Finish Line were trading at $1.81, down 18.10% from Thursday’s close of $2.21 (THE DAILY).