Finish Line Falls Short of Earnings Estimates

Brittney Barrett |

Sneaker and sport attire retailer, Finish Line Inc. (FINL) released its earnings report late Thursday, sliding lower after market close. A number of retailers have been climbing surprisingly as a result of their earnings reports, but narrowly missing analyst expectations, Finish Line was not among these companies.  Fiscal first-quarter net profit reached $16.4 million, or 30 cents a share up from $13.6 million, or 25 cents a share in the year-ago period. Revenue for same time-line, which ended May 28 was 6 percent higher at $299.5 million from $282.4 million. Even the year-over-year improvement ; however, was not enough to keep shares in the black against analyst forecasts of 30 cents a share on revenue of $301.4 million. In spite of after-trading losses, which have been relatively minor, the stock  has climbed 26 percent year to date.

For other companies in the sector, furniture maker Herman Miller Inc. (MLHR) for instance, earnings had a more positive impact on share prices. A Thursday afternoon report on fiscal fourth quarter profits indicated a sharp rise from $2.1 million in the year-ago-period to $17.1 million this year. Shares rose considerably following the announcement in what could turn into a rally for the company. Following the report Herman Miller was upgraded by analysts at EVA Dimensions, LLC. EVA Dimensions, LLC upgraded the stock to Hold from Underweight which could send their stocks higher in the future.

Another major beneficiary of the retail boom is Bed Bath & Beyond (BBBY). T home furnishings retailer reported a massive first-quarter net income increase of 31 percent on a strong sales and even boosted the full-year forecast on the news.

Revenue at stores open over one year rose 7 percent. Net income for Bed, Bath & Beyond was $180.6 million, or 72 cents per share for the quarter. During the same period last year the company earned $137.6 million, or 52 cents per share. Revenue was up 10 percent to $2.11 billion, exceeding analyst expectations of $2.07 billion according to Fact Set.

Bed Bath & Beyond revised its earning to between 77 and 82 cents per share for the second quarter in line with analyst expectations. For the full-year Bed Bath & Beyond states that it anticipates earnings to rise 15 to 20 percent against last years up from the 10 to 15 percent it forecast in April.

Walmart (WMT) also pushed higher following a Bloomberg report stating Li & Fung Ltd., the largest supplier of clothes and toys to retailers, indicated Wal-Mart Stores Inc. could be bolstered from a waning U.S. economic recovery. “I think they actually might be gaining,” said Deputy Chairman William Fung said of the company. The low-priced products could see more customer support during than the slower-than-expected recovery. Wednesday’s less than optimistic announcement from the Fed and confusion over why the economic recovery is lagging could be detrimental to consumer sentiment, thereby bolstering sales at the discount store.

Walmart is anticipated to become one of Li & Fung’s top five clients this year says Fung.

 

 

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
AON45 Aon Plc 4.750% Senior Notes 2045 n/a n/a n/a 0
FINL The Finish Line Inc. 24.25 0.44 1.85 328,926
WMT Wal-Mart Stores Inc. 70.64 0.04 0.06 2,258,184
MLHR Herman Miller Inc. 34.08 0.23 0.66 92,054
BBBY Bed Bath & Beyond Inc. 47.72 0.04 0.08 882,596

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