Finish Line Q1 Results Top View

(RTTNews) - Athletic shoes and apparel retailer Finish Line, Inc. (FINL) Friday reported increased first-quarter profit, helped by sales that climbed close to 16 percent. Adjusted earnings and sales topped Wall Street estimates. The firm backed its full year outlook. The stock is gaining over 5 percent in pre-market activity.

Net income attributable to the company increased to $12.44 million from $5.08 million in the prior year. Earnings per share increased to $0.25 from $0.10.

Adjusted earnings per share rose to $0.28 from $0.20 in the prior year. On average, 18 analysts polled by Thomson Reuters expected earnings of $0.21 per share. Analysts' estimates typically exclude special items.

Adjusted results exclude the impact of impairment charges in the current year and the impact of start-up costs related to the launch of the company's operations in Macy's in the prior year.

Net sales improved to $406.53 million from $351.05 million in the previous year. Analysts expected revenues of $394.47 million.

Finish Line comparable store sales increased 5 percent.

Glenn Lyon, chairman and chief executive officer, said, "We are confident that our multidivisional, omnichannel strategies will strengthen our market position and drive growth in sales and earnings, allowing us to return increased value to our shareholders in the years ahead.''

As of May 31, consolidated merchandise inventories rose 0.8 percent to $295 million from $292.6 million as of June 1, 2013.

The company repurchased 700,000 shares of its common stock in the first quarter, totaling $18.7 million. The firm has 3.2 million shares remaining on its current Board authorized repurchase program.

Looking ahead, for the fiscal year ending February 28, 2015, the company still expects earnings per share to increase in the high single to low double digit range from the prior year's $1.66, and Finish Line comparable store sales to be up mid single digits.

Wall Street looks for earnings of $1.85 per hare for the year.

FINL closed down 3.3 percent on Thursday at $29.15, and is rising 5.5 percent in pre-market activity.