by InvestorPlace Staff | September 28, 2012 11:02 am
Mall-based athletic retailer Finish Line (NASDAQ:FINL) announced second-quarter earnings rose a better-than-expected 19% on stronger same-store sales, and increased its per share year end estimates to the high side as the company took advantage of product roll-outs from suppliers Nike (NYSE:NKE) and Adidas (PINK:ADDYY).
For the period ending September 1 Finish Line earned a profit of $25 million (40 cents per share) on revnues of $385 million, besting Street estimates of 44 cents per share earnings on $358 million in revenue.
Finish Line is moving to expand its retail offerings through extensive social networking on its Twitter account, and has made changes in its website, trying to make it more brand focused. The company has also gone to hand-held point of sale cash registers in the stores.
However the biggest retailing splash is the company’s announcement that it will partner with Macy’s (NYSE:M) by opening Finish Line-branded athletic footwear shops in 450 Macy’s stores, and also feature the line through macys.com.
Finish Line will become the exclusive athletic footwear partner at Macy’s, and will also manage other athletic footwear in the stores as well as additional inventory at other Macy’s stores.
On a long-term basis the deal is expect to boost Finish Line’s sales by $250 million to $350 million a year. Finish Line shares are trading higher on the year by 17%, but are flat in early morning trading despite the upbeat news.
-Written by InvestorPlace Staff
Source URL: http://investorplace.com/2012/09/finish-line-breaks-the-tape-with-macys-partnership-addyy-finl-m-nke/
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