Indianapolis -- The Finish Line said its fourth-quarter profit dropped 18% as gross margins fell and overall sales declined more than analysts expected. The chain’s adjusted earnings and same-store sales growth, however, were in-line with its expectations.
For the fourth quarter ended March 2, Finish Line reported net income of $34.3 million, down from $41.9 million a year earlier.
Consolidated net sales were down 3% to $442.7 million. Same-store sales increased 0.7%. Digital sales, which are included in the comparable store sales results, were up 21.0%.
"While our fourth quarter performance was in-line with expectations, it was a challenging second half of the year for us," commented Glenn Lyon, chairman and CEO. "We experienced weakness in our running business at Finish Line and adjusted our operating platform and expenses to meet those market dynamics. Moving forward, we remain committed to our growth strategies and the investments required for our Finish Line, Macy's and The Running Company businesses to drive long-term shareholder value.”
Next month, Finish Line will begin to open in-store shops at Macy's, for a total of 450 Macy's stores during the next two years.