Finish Line Reports Strong Product Cycle Trends In 4Q, Sterne Agee Maintains Buy Rating (FINL)

Sterne Agee has published a research report on Finish Line, Inc. (NASDQ: FINL) after the company reported a strong product cycle trend during its 4Q.

In the report, Sterne Agee writes "We are estimating EPS of $0.63 versus consensus of $0.64 and $0.61 LY. We are forecasting SSS of +1.0%, (v. +10.0% LY), on sales of $372.6M. Our +1% estimate reflects SSS increases in December, January & February of 4.5%, -10%, and 0%, respectively (versus +10.7%, +10.3% & +8.7% LY). QTD sales were +4.5% when 3Q results were reported on December 23rd. Based on recent results from Foot Locker (FL-$19.30-Buy), Dick's (DKS-$39.74-Neutral), Hibbett (HIBB-$31.26-Buy) and Famous Footwear (BWS-$10.83-NR), it is evident athletic footwear trends are accelerating, led by technical running, lightweight running and basketball. The current strength of the running and basketball business are more than compensating for the strong toning business last year, which was magnified by the positive comps in athletic footwear cited on recent calls by both Famous Footwear and DSW (DSW-$39.10-NR). We suspect that our February SSS forecast and our EPS estimates may prove conservative given the aforementioned results of other retailers, and the highly successful Jordan Retro Playoff launch which occurred on the last day of FINL's quarter."

Sterne Agee maintains its Buy rating and $23 price target.

Finish Line closed yesterday at $17.48.