Finish Line revises sales & earnings guidance for Q2
25 Aug '06
3 min read
The Finish Line Inc announced revised sales and earnings guidance for its second quarter ending August 26, 2006 ("Q2").
The Company stated it expects to report consolidated net sales for Q2 in the range of $335 million to $339 million, compared to $341.6 million reported for the second quarter ended August 27, 2005 ("Q2LY").
The Company expects comparable store sales results for Q2 to be in the range of -6 percent to -8 percent (negative 6 percent to negative 8 percent).
This compares to previous guidance for Q2 of consolidated net sales of $352 - $362 million and comparable store sales of -3 percent to -6 percent (negative three percent to negative six percent).
The Company is revising Q2 earnings guidance due to the decrease in sales and pressure on product margins, as well as negative leverage on occupancy costs and selling, general and administrative expenses.
The Company's new guidance for Q2 diluted earnings per share is a range of $.19 to $.21 compared to previous guidance of $.25 to $.28 per diluted share.
Alan H. Cohen, Chairman and CEO stated, "For the second quarter we have continued to experience significant weakness in women's performance running which was down double digits on a comparable store basis. The softgoods business also slowed in Q2 with comparable sales down double digits as well."
"Comparable sales for the quarter decreased 8 percent in June followed by an 11 percent decrease in July. August comparable sales are expected to be negative 3-5 percent. We currently anticipate that we will report inventory that is up 6-8 percent per square foot for the Finish Line stores at the end of Q2 compared to Q2LY."
marketing@alchempro.com
