Upcoming AWS Coverage on Genuine Parts

LONDON, UK / ACCESSWIRE / January 4, 2017 / Active Wall St. announces its post-earnings coverage on The Finish Line, Inc. (NASDAQ: FINL). The Company reported its third quarter fiscal 2017 financial results on December 21, 2016. The footwear and apparel retailer posted less-than-expected sales growth, hampered by weak demand for apparel and accessories, while it also lowered its earnings guidance. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Finish Line's competitors within the Specialty Retail, Other space, Genuine Parts Co. (NYSE: GPC), is estimated to report earnings on February 21, 2017. AWS will be initiating a research report on Genuine Parts in the coming days.

Today, AWS is promoting its earnings coverage on FINL; touching on GPC. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=FINL

http://www.activewallst.com/registration-3/?symbol=GPC

Earnings Reviewed

For the three months ended November 26, 2016, Finish Line reported that revenue grew 3% on a y-o-y basis to $371.7 million, less than the $411.3 million in revenue projected by analysts. During the reported quarter, Finish Line comparable store sales inched up 0.7%, far below the 7.4% growth expected by analysts. The Company noted that it sales from Macy's Inc. surged 33.2%.

For Q3 FY17, Finish Line consolidated gross margin increased 370 basis points from a year ago to 26.7%. Product margin net of shrink increased 400 basis points as Q3 FY16 was negatively impacted by a lack of full price selling of new product due to the supply chain disruption.

For Q2 FY17, Finish Line reported a loss of $40.4 million compared to loss of $21.8 million in the year ago same period. On a diluted per-share basis, the Company registered a loss of $1.00 compared to a loss of $0.49 per share in Q3 FY16. On an adjusted basis to exclude severance-related charges, Finish Line reported net loss of $0.24 per share which was higher than the loss expected by analysts of $0.18 per share.

Commenting on the earnings release, Sam Sato, Chief Executive Officer of Finish Line, stated:

"We are disappointed that our third quarter sales and earnings fell short of our expectations, steep declines in apparel and accessories offset a high-single digit footwear comp gain and a 33% sales increase in our Macy's business. Despite our recent underperformance, we remain confident in the strategic course we have set for the Finish Line."

Balance Sheet

As of November 26, 2016, Finish Line's consolidated merchandise inventories increased 4.6% to $401.5 million compared to $383.8 million as of November 28, 2015. The Company repurchased 250,000 shares of common stock in Q3 FY17, totaling $5.8 million. The Company has 5.0 million shares remaining on its current Board authorized repurchase program. As of November 26, 2016, Finish Line had $33.3 million in cash and cash equivalents and $17.0 million of interest-bearing debt.

At the end of Q3 FY17, Finish Line had 580 stores, while its stores count for Macy's stores with branded shops was 392.

Outlook

For FY17, Finish Line expects comparable store sales to range between flat to up 1%, lower from its previously anticipated increase of 3% to 5%. The Company is forecasting non-GAAP diluted earnings per share from continuing operations between $1.24 and $1.30 compared to the earlier outlook of $1.50 to $1.56 a share.

For Q4 FY17, the Company is estimating comparable store sales to decline between 3% to 5% and non-GAAP diluted earnings per share from continuing operations between $0.68 and $0.73.

Stock Performance

At the close of trading session on January 03, 2016, Finish Line's stock price marginally dropped 0.85% to end the day at $18.65. A total volume of 1.67 million shares were exchanged during the session, which was above the 3-month average volume of 1.44 million shares. The Company's share price has gained 2.00% in the past twelve months. The stock currently has a market cap of $762.97 million. The company's shares are trading at a PE ratio of 31.83 and have a dividend yield of 2.14%.

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SOURCE: Active Wall Street