Finish Line is selling their specialty running-shoe store chain, JackRabbit, according to a new report from Bloomberg.
The news comes after the brand’s ambitious expansion in their specialty running-shoe department, and an overall good Q2. However, the company’s stock has slipped in its most recent quarter, down to $19.60 at Tuesday’s close from a yearly high of $24.38 in September.
Finish line is not the only major sporting retailer to experience problems. This year has seen an overall negative trend for sporting-good retailers after many of the big-named stores, like Sports Authority, filed for bankruptcy.
JackRabbit’s decline in sales may have more to do with the hard-sell of a specialty running-shoe store during a time when exercising is becoming more social.
“Running is much more social and lighthearted now,” Powell said. “It’s: ‘I’m out with my friends and having a good time.’ If that’s how you are approaching your fitness, you probably don’t need a $150 running shoe,” said Matt Powell, an NPD analyst, in an interview with Bloomberg.
While the company had a successful Q2, the latest decline might indicate more changes to come.