American sportswear and footwear retailer Finish Line Inc. (FINL) released the first quarter financial report Friday, showing that its net profit fell 25%, due to rising costs offset revenue growth.
As of the quarter ended June 2, the company’s net profit declined from a year earlier of $16.4 million, or 30 cents per share, to $12.3 million, or 24 cents per share, but higher than the average expectation of 23 cents of the analysts polled by FactSet.
Revenue rose 6.5%, to $319 million from $300 million in the same period last year, below the average analyst estimate of $321 million.
Finish Line said same-store sales climbed 8% in the first-quarter, this figure is a key indicator to measure the retailer’s financial health, because it does not include sales of stores opened or closed in the past year.
The company’s cost of sales increased by 9.3%, to $214 million; selling, general and administrative expenses increased 11% to $84.8 million.
The company also raised its full-year profit forecast. The current earnings per share is expected to grow by 6-7%, higher than the previously expected single-digit growth. Analysts on average expect the company’s annual earnings per share would reach $1.61, an increase of 5.2%, compared with the previous fiscal year of $1.53.
Finish Line stock price jumped 11.94%, or $2.23, to close at $20.91 Friday, with a volume of 2.04 million shares versus the daily average of 1.14 million shares. Over the past 52 weeks, Finish Line stock traded as high as $26.16 and as low as $16.42. On the basis of the latest closing price, Finish Line currently has a market cap of 1.06 billion.