FBR Capital Reiterates an 'Outperform' on Finish Line (FINL); 1Q in Line, Trends Remain Favorable and Fundamentals Are Sound
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Price: $13.51 --0%
Rating Summary:
3 Buy, 22 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
Rating Summary:
3 Buy, 22 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
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FBR Capital reiterates an 'Outperform' on Finish Line (NASDAQ: FINL), PT $24.
FBR analyst says, "With product catalysts still plentiful, the easing of toning
comparisons in 2Q (2% of total sales in 2Q11 vs. 4.5% of sales in 1Q11), and an appropriate level of inventory (+6% per square foot with 90% of aging inventory at six months or less), our outlook on sales momentum remains positive. While the growing e-commerce business (4.5 percentage points of the 2QTD comp is attributable to online sales) layers in greater variable costs, driving SG&A higher, the lack of occupancy/higher gross margin should be net accretive to operating margin. With Nike Track Clubs being rolled out to all stores by Holiday (currently in 400 stores), a move to a commission store labor model, and technology improvements targeting labor and planning and allocation, we also expect store productivity to continue its positive trajectory, giving us confidence that the company's double-digit operating margin goal is achievable (predicated on the product cycle holding up)."
"Our new FY12 EPS estimate is $1.51 (was $1.48). Our FY13 EPS estimate goes to $1.67, up from $1.64."
For more ratings news on Finish Line click here and for the rating history of Finish Line click here.
Shares of Finish Line closed at $21.34 yesterday.
FBR analyst says, "With product catalysts still plentiful, the easing of toning
comparisons in 2Q (2% of total sales in 2Q11 vs. 4.5% of sales in 1Q11), and an appropriate level of inventory (+6% per square foot with 90% of aging inventory at six months or less), our outlook on sales momentum remains positive. While the growing e-commerce business (4.5 percentage points of the 2QTD comp is attributable to online sales) layers in greater variable costs, driving SG&A higher, the lack of occupancy/higher gross margin should be net accretive to operating margin. With Nike Track Clubs being rolled out to all stores by Holiday (currently in 400 stores), a move to a commission store labor model, and technology improvements targeting labor and planning and allocation, we also expect store productivity to continue its positive trajectory, giving us confidence that the company's double-digit operating margin goal is achievable (predicated on the product cycle holding up)."
"Our new FY12 EPS estimate is $1.51 (was $1.48). Our FY13 EPS estimate goes to $1.67, up from $1.64."
For more ratings news on Finish Line click here and for the rating history of Finish Line click here.
Shares of Finish Line closed at $21.34 yesterday.
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