Finish Line Inc (NASDAQ: FINL) gained lost of ground Thursday after the company posted upbeat Q3 results and raised its FY18 outlook.
The company based in Indianapolis made known that its consolidated net sales were $378.5 million, an increase of 1.8% over the prior-year period, while comparable store sales increased 0.8%. On a GAAP basis, diluted earnings per share from continuing operations pointed to a 32-cent loss.
Non-GAAP diluted earnings per share from continuing operations, primarily excluding the impact from store impairment charges, indicated a loss of 26 cents.
Finish Line CEO Sam Sato said, "We finished the third quarter ahead of expectations despite a highly promotional environment for athletic footwear.
"The growth initiatives that we’ve put in place are driving increased traffic to our brand and helping increase conversion. While we responded to certain pricing actions in the marketplace to be competitive, we delivered gross margin in line with forecasts, and remained highly disciplined in managing expenses and inventories.
"Looking ahead," Sato continued, "we continue to be cautious in the near-term, but I am confident that the work we are doing to position the company for long-term growth and enhanced profitability is gaining traction."
The company’s outlook is for comparable sales to decrease 2% to 3% and adjusted earnings per share to be in the range of $0.59 to $0.67 for the 53-week fiscal year ending March 3, 2018 due to third-quarter outperformance.
Finish Line share prices accelerated $1.13, or 9.7%, to $12.82 as the clock approached noon ET on Thursday.
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