Boston, MA 09/29/2014 (wallstreetpr) – Poor demand for basketball shoes continues to be the biggest headwind for mall-based retailer Finish Line Inc. (NASDAQ:FINL), which is experiencing the wrath of Wall Street after reporting poor second-quarter results. The effects of poor results that missed expectations continue to be felt far and wide, seen by the stock plummeting in the market.
Poor Show by Basketball Products
Finish Line Inc. (NASDAQ:FINL) posted earnings per share of 54 cents compared to analysts’ estimates of 60 cents a share. Sales for the quarter came in at $466.9 million missing estimates of $477.7 million. Chief executive officer, Glenn Lyon, has already admitted that basketball products performed poorly in the quarter consequently reiterating that plans are underway to correct the poor performance.
Concerns have already been raised about the potential of the footwear industry, despite Finish Line reiterating full year guidance. The company’s earnings were a shadow of Nike Inc. (NYSE:NKE), which reported impressive earnings per share of $1.09, up by 26.7%.Sales, on the other hand, were up by 14.5% to a high of $7.98 billion.
Finish Line Downgraded
A poor run of results by Finish Line comes in the wake of analysts at Morgan Stanley (NYSE:MS) downgrading the stock to an equal weight. Analysts had argued that the firm was grappling with poor stock-checks that continue to affect sales. Finish Line is not the only company that is receiving a beating in terms of stock price in the industry. Skechers USA Inc. (NYSE:SKX) has also been plummeting as analysts maintain the belief that sales in the footwear space are slowing.
CEO, Lyon, has also announced that the company is working aggressively with its brand partners to try and see ways in which assortments of basketball products could be improved to have an impact on sales. Finish Line Inc. (NASDAQ:FINL) is trying to compete against Nike, which reported a strong performance on most of its categories including basketball and running merchandise.
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