Finish Line, An Acquisition Target?

(RTTNews) - Finish Line (FINL) top shareholder Sports Direct International, U.K.'s largest sports goods retailer, has upped its stake in the retailer from 9.2% on May 17 to 19.9% on June 21. It is unclear whether Sports Direct is interested in taking over Finish Line. If it is, It would certainly be a good move for Finish Line shareholders.

FINL stock closed Thursday's trade at $12.73, close its 52-week low. The current price is nearly 50% lower than the stock's 52-week high of $24.52.

Friday, the premium retailer of of athletic shoes, apparel and accessories, reaffirmed its outlook for the fiscal year ending March 3, 2018, amid a challenging retail environment.

For the 53 week fiscal year ending March 3, 2018, the company still expects Finish Line comparable store sales to increase in the low-single digits range and adjusted earnings per share to be between $1.12 and $1.23. Analysts are modeling $1.14 per share.

First-quarter results were in no way spectacular, but at least the company managed to meet earnings estimates, while missing revenue expectations.

"We delivered earnings in-line with our expectations despite some unanticipated headwinds late in the quarter," said Sam Sato, Chief Executive Officer of Finish Line.