Sneaker retailer Finish Line struggled through its second quarter of 2018, despite taking its ‘poison pill’ approach last month.
The company took measures in August using a new Shareholder Rights plan to eradicate a possible takeover. While instating the plan, Finish Line adjusted its outlook, reflecting the company’s poor performance during the second quarter.
The company saw consolidated net sales of $469.4 million, a 3.3% drop compared to last year. The number also missed analyst predictions of $470.5 million.
Comparable store sales dropped 4.5%. However, Finish Line saw a glimmer of hope as its Macy’s sales grew 5.6%.
On a GAAP basis, diluted earnings per share (EPS) from continuing operations were $0.08, while Non-GAAP EPS, which mainly excludes the impact of store impairment charges, were $0.12.
“Our second quarter results were shaped by a very promotional marketplace for athletic footwear,” said CEO Sam Sato. “With industry headwinds weighing on our sales and margin trends, we remain disciplined in managing our expenses and inventories. While we are planning for a challenging retail environment in the near-term, we are confident that the merchandise, digital, in-store and operational initiatives currently in place will allow us to achieve our current full year outlook and best position the company to deliver increased shareholder value over the long-term.”
The Finish Line continues its outlook it reported last month, which has its comparable sales decreasing three to five percent, compared to its previous guidance of an increase in the low-single digit range. Adjusted EPS are now expected to be around $0.50 to $0.60 for the third quarter, compared to its previous expectations between $1.12 to $1.23.