Finish Line (FINL) reported better-than-expected second-quarter revenue, but shares dove Friday after management reportedly commented on this month's weaker-than-expected same-store sales.
CFO Ed Wilhelm said during the post-earnings conference call that September comps were up at a "low-single-digit percentage rate," according to Bloomberg.
Shares fell 5.2% to close at 22.75 on the stock market today, trading just above the 50-day moving average after falling as low as 22.30 intraday. Finish Line stock had risen for seven straight sessions after finding support at the 50-day line in mid-September.
In Q2, Finish Line brought in sales of $509.4 million, a 5% rise, while per-share profit fell 7% to 53 cents, meeting forecasts. Wall Street had expected $494.8 million in sales.
Current Street estimates have the company's full-year revenue growing 3.5% with EPS of $1.54.
"We believe that new CEO Sam Sato continues to be conservative with guidance, store rationalization, and omnichannel initiatives; a better mix could drive upside to FY17 guidance in 2H," wrote FBR analyst Susan Anderson in a note released before the Finish Line earnings call.
But she later told Bloomberg that September's performance was softer than expected.
IBD'S TAKE: Shares of Finish Line have been forming a yearlong cup-with-handle base. What does that mean, and how close is the stock to breaking out? Check out Thursday's Stock Market Today: Live Edition for chart analysis of the stock: "Nasdaq Hits New High; Boeing, Yahoo, e.l.f. Finish Line Shares Rise."
Nike shares fell 0.5% to 55.15. Under Armour initially edged higher, moving above its 200-day line, but then fell 1.1% to 39.45. Finish Line's larger rival Foot Locker (FL) shaved off 2 cents to finish the week at 67.07.
