The Finish Line Halted After Hours as Q2 Results Expected Below Street

The Finish Line (FINL) shares were halted after hours as the company said it now expects Q2 results to be well below Wall Street estimates, and lowered its outlook for the full year.

The sports retailer said consolidated net sales were down 3.3% to $469.4 million, driven by a 4.6% decrease in comparable sales. The consensus on Capital IQ is for revenue of $477.7 million. Finish Line also sees Q2 earnings per share of $0.08 to $0.12, while the Street’s view was for $0.38 per share, if comparable.

Finish Line expects comparable sales to decrease 3% to 5% versus previous guidance for an increase in the low-single digit range. Adjusted EPS are now expected to be in the range of $0.50 to $0.60 for the 53-week fiscal year ending March 3, against previous guidance of $1.12 to $1.23. The Street’s view is for $1.11.

For fiscal Q3 the the company expects comparable sales to decrease 3% to 5% and the adjusted loss per share to be in the range of $0.32 to $0.40. The Street’s view is for a loss of $0.25 a share.

And for Q4, Finish Line sees comparable sales down 3% to 5% and adjusted EPS to be in the range of $0.50 to $0.58, inclusive of a $0.06 per share contribution from an extra week in the quarter. The Street view is $0.74 per share for Q4.