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INDIANAPOLIS (AP) — Sneaker and athletic clothing retailer The Finish Line Inc. said Friday its fiscal first-quarter profit tumbled 25 percent, as higher costs offset sales growth.
For the quarter ended June 2, the Indianapolis-based company earned $12.3 million, or 24 cents per share, down from $16.4 million, or 30 cents per share, in the same quarter last year.
Sales rose 6.5 percent to $319 million from $299.5 million.
The profit beat Wall Street predictions by a penny. Analysts, on average, expected a profit of 23 cents per share on $320.7 million in revenue, according to a FactSet poll.
Finish Line said its sales at stores open at least a year increased 8 percent. The metric is a key measure of a retailer's health, because it excludes sales at stores that opened or closed during the year.
The company's cost of sales rose 9.3 percent to $214.4 million, while selling, general and administrative expenses increased 11 percent to $84.8 million.
Based on the first-quarter results, the company said it now expects earnings per share to grow 6 to 7 percent for the full year, up from its previous prediction of "mid-single digit" growth. The guidance assumes same-store sales growth of 5 to 6 percent. Analysts expect earnings per share of $1.61 according to FactSet, implying growth of 5.2 over last year's $1.53 per share.
Finish Line shares added 6.5 percent, or $1.21, to $19.89 in early trading.