Tallahasee, FL 3/30/12 (StreetBeat) -- Sneaker and athletic clothing retailer The Finish Line Inc (Nasdaq: FINL). said Friday that its fourth-quarter profit jumped 22 percent, boosted by double-digit jumps in both in-store and online sales.The earnings were roughly in line with Wall Street predictions, but the Indianapolis-based company projected a lower-than-expected fiscal first-quarter profit. Its shares tumbled 14 percent inmorning trading.
Also on Friday, Finish Line said that Denver-based private equity firm Gart Capital Partners will invest $10 million in its running specialty group. The group's headquarters will be relocated to Denver and Gart will manage its day-to-day operations.
3.48For the quarter ended March 3, Finish Line reported net income of $41.9 million, or 80 cents per share, up from $34.3 million, or 63 cents per share, in the year-ago quarter.
Excluding impairment charges, the company said it posted an adjusted profit of 81 cents per share for the recent quarter, matching the average estimate of analysts polled by FactSet.
Revenue rose 19 percent to $456.3 million from $384.6 million, topping average Wall Street estimates of $432.6 million.
Sales at stores open at least a year, a key measure for retailers that excludes stores recently opened or closed, rose 11 percent. Digital sales, which are included in that measure, jumped 38 percent.
For fiscal year 2012, the company earned $84.8 million, or $1.59 per share, up from $68.8 million, or $1.26 per share. Revenue rose to $1.37 billion from $1.23 billion.
For the fiscal first quarter, Finish Line said it expects a same-store sales increase in the "mid-single digit range," but because of planned investments, lower margins and a shift in the promotional calendar, earnings per share for the quarter are expected to be down about 30 percent.
Based on the company's year-ago profit of 30 cents per share, the guidance implies a current-quarter profit of 21 cents per share. Analysts polled by FactSet expect earnings of 36 cents per share.
For the current fiscal year, Finish Line said it expects to post earnings per share and same-store sales growth in the "mid-single digits." And as the company begins to reap the benefits of investments in its technology and stores, earnings per share growth should increase to the "low- to mid-teens" beginning in fiscal 2014.
Finish Line shares dropped $3.54, or 14 percent, to $21.80 in morning trading. They had hit a 52-week high of $26.16 on Monday. They are 33 percent above their low for the past year of $16.42 set in mid-August.
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