Finish Line records 20% leap in Q1 profit
Indianapolis — Finish Line reported Thursday that earnings for the quarter ended May 28 rose 20% to $16.4 million, compared with $13.6 million in the year-ago period.
Revenue, despite a 6% rise to $299 million, missed Wall Street expectations of $301.4 million.
Same-store sales increased 6.1% for the quarter.
Sears to spin off 89-store Orchard Supply Hardware chain
Hoffman Estates, Ill. — Sears Holdings Corp. disclosed in a Thursday filing that it plans to spin off its Orchard Supply Hardware Stores Corp. business as a separate, publicly traded company.
In a filing with the Securities and Exchange Commission, Sears said it believes that the 89-store chain will generate more shareholder value on its own. Shares in Orchard Supply Hardware will be distributed equitably among shareholders of Sears Holdings, which owns 80% of Orchard Supply, and Ares Management LLC, which owns the remaining 20%. As a result, ESL Investments, the hedge fund controlled by Edward S. Lampert, which controls roughly 61% of Sears Holdings, will become the new company’s largest owner.
Sears has valued Orchard at $82 million. No target price for the IPO has yet been set and no spin-off date has been announced. Orchard generated a profit of $8.7 million and $661 million in revenue in fiscal 2010, but its revenue has dropped for several consecutive years and its profit picture has been erratic.
Finish Line comp continues to thrive
INDIANAPOLIS— The Finish Line reported that net sales for the first quarter increased 6% to $299.5 million in the first quarter compared with $282.4 million a year ago. Comparable-store sales increased 6.5% in the first quarter on top of an increase of 10.9% for the same period a year ago.
Finish Line reported first quarter income from continuing operations of $16.4 million, or 30 cents per diluted share, compared with income from continuing operations of $13.7 million, or 25 cents per diluted share, a year ago, representing a 20% earnings per share increase.
“Delivering growth on top of a strong performance a year ago was the story of the first quarter,” said Finish Line chairman and CEO Glenn Lyon.
Finish Line operates 656 stores in malls across the United States.