Indianapolis - The Finish Line's first-quarter net income plunged 59% amid start-up costs related to its deal to open branded in-store shops in Macy’s. But the retailer still beat Wall Street expectations. In other news, the company announced a new role for retiring president and COO, Steve Schneider.
The Finish Line earned $5.1 million for the period ended June 1, down from $12.3 million a year ago. Revenue rose 10% to $351.1 million, also beating expectations. Same-store sales were up 2.4%.
“We are pleased with the start to fiscal 2014 as improving trends in our Finish Line running business combined with continued strength in basketball and disciplined expense management drove our results,” said chairman and CEO Glenn Lyon. “Strategically, the quarter was marked by significant progress on our key growth initiatives, including the well-received launch of our Macy’s business in stores and online and the expansion of the Running Specialty Group footprint with the acquisition of some very productive doors.”
The company said that current president and COO Schneider will transition to the role of EVP of strategic initiatives effective July 1, 2013.
“When Steve first approached me about his long-term plan toward retirement after almost 35 years in specialty retail, including 24 years at Finish Line, we discussed how to continue to capitalize on his strengths and the vital role he holds with our leadership team,” Lyon said. “Steve’s incredible business acumen, his strong operational analysis and his keen vision for planning will be key to implementing Finish Line’s long-term strategic growth plan.”