Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowShares of The Finish Line Inc. fell 6 percent, to $9.03, this morning after the company announced that it lost $3.9 million in its first fiscal quarter ended June 2.
The loss of 8 cents per share is less than the 9 to 11 cents the Indianapolis company expected. Finish Line reported a $4.4 million profit a year earlier.
Finish Line, which announced June 18 that it would buy Genesco Inc., the Nashville, Tenn., parent of Indianapolis-based Hat World, also said same-store sales slumped 3.9 percent, an improvement from the 7.2-percent decline it experienced in the same period last year.
Sales were virtually stagnant at $288.3 million, but profit was dragged down by higher expenses.
Analysts are wondering how the conservatively managed company, which plans to borrow nearly the entire $1.5 billion purchase price, will fund the deal.
In a conference call this morning, one analyst asked how he could expect to follow Finish Line if the company didn’t disclose whether its financiers had limited its borrowing capacity.
A company official said the information would be forthcoming.
Please enable JavaScript to view this content.