By
Evan Niu
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September 23, 2011
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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Finish Line (Nasdaq: FINL ) is sprinting ahead by as much as 14% today after the company reported quarterly earnings ahead of Wall Street estimates last night.
So what: On Thursday, the company put up second-quarter revenue of $331.5 million, a 10% increase, while net income came in at $20.9 million, or $0.39 per share. Street analysts were looking for earnings per share of $0.38 on $321.9 million in sales. Comparable-store sales rose by a healthy 11% and sit at 9% so far this month through Sept. 19.
Now what: Similarly, fellow sporting-apparel maker Nike (NYSE: NKE ) also reported better-than-expected earnings, adding some bullishness to the sector and boosting names like lululemon athletica (Nasdaq: LULU ) and Under Armour (NYSE: UA ) . Finish Line is looking to expand through acquisitions and recently acquired an 18-store chain of specialty running shops for roughly $8.5 million. The company expects online sales and heavy demand for its lightweight running shoes to continue to benefit its margins in the coming quarter. With fears of a double-dip recession dominating headlines, having a handful of retailers coming in above expectations is one of a few bright spots amidst all the rampant pessimism of late.
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