August 05, 2014
This Company is prepared to Run This Season
Due to the effects of serious climate conditions, retailers were unable to witness increase growing traffic at its stores and register higher sales. This also fostered outdoor activities as individuals went out to play. In addition, the FIFA World Cup was an important increase for people to store.
This resulted in gains for retailer, notably the fit retailers. With the World Cup temperature all over the world, footwear retailers are in merriment as sales have been growing.
A well-performed quarter
Revenue surged 16% to $406.5 million, over last year's quarter. The primary reasons for the increase were inclusion of new stores and same store sales growth of 5% which improved Finish Line's top line. The gain in comparable store sales was because of higher store traffic and more purchases.
In addition, the business has been able to fight the problems of decreasing demand for running shoes women nike blazer high.by supplying various other items such as basketball gears. Basketball products have already been much in vogue today as folks desire more of such products.
The footwear retailer's among the major moves was its venture with Macy's (M). This enabled the firm to launch its products in Macy's stores, among the leading grocery store chains in the U.S. These stores were introduced jointly in April 2013 and are expected to gain the company in future. This provided a chance to offer its products to a wider customer base and a greater exposure to the retailer.
Going down to the bottom line, gains for the quarter jumped to $0.28 per share as compared to $0.10 per share last year. Further, despite a rise in input costs, gross margin expanded to 31.7% from 30.5% in the previous year. This emphasizes the fact the retailer was able to handle its prices efficiently along with a growing top line.
A number of points to consider
It's not only Finish Line that's seeing higher demand for athletic products, but also peers such as Foot Locker (FL) are experiencing a rise in customer interests. In fact, Foot Locker filed a comparable store sales increase of 7.5% in its latest quarter, reported last month. Both Foot Locker and Finish Line benefitted from the new products launched by Nike, which brought customers. Also, demand for products such as sports gear and sneakers increased fast.
Moreover, Finish Line accentuated its online shopping by enlarging its presence in the on-line space. It has also fortified its site , and it has incorporated it womens blazers. shops to it. With the growing popularity of online shopping, this has helped the firm into a substantial extent.
Final words
Finish Line has been doing unexpectedly well, which will be clearly apparent from its recent quarter. Further, its efforts on expanding its existence, through venture with Macy's and integrating shops to sites, should prove to be profitable. Also, it has repurchased 700,000 shares during the quarter, which pleased its investors. These points collectively make Finish Line look like a promising bet.
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