Finish Line (FINL) Fiscal 4Q17 Results: EPS Misses Consensus; Comps Weak

Executive Summary

• Finish Line reported fiscal 4Q17 adjusted EPS of $0.50, missing the consensus estimate of $0.70. The company reported revenues of $557.5 million, down 0.4% from 4Q16 and missing the consensus estimate of $548.1 million.
• Comparable sales declined by 4.5% year over year, coming in at the low end of the company’s guidance range and missing consensus of (3.7)%.
• For FY18 (ending March 3, 2018), Finish Line expects a low-single-digit comp increase and EPS of $1.12–$1.23, which would be an improvement of 6%–16% from the prior year. Finish Line’s Macy’s business is expected to hit the highend of its long-term annual sales goal of $350 million in FY18, ahead of the planned timeline.