Software hiccups dint Finish Line’s sales
07/01/2013
Issues with site design and functionality hampered sales, while a misplaced bet on athletic footwear trends also added to its woes.
Its chief executive, Glenn Lyon, said: “The third quarter was clearly more challenging than we anticipated. Our top-line performance forced us to get more promotional to improve the composition of our inventory ahead of the important holiday season. At the same time, we did not adjust our cost structure quickly enough in response to slowing sales trends.”
For the 13 weeks ended December 1, 2012, comparable store sales increased 3.6% and consolidated net sales increased 5.2% to $296.6 million. Digital sales grew 25% during the quarter, but the company estimated it lost $3 million in sales during the three-week period that the new site operated.
“Following our recent challenges,” Lyon continued, “we have taken immediate actions to improve near-term results. This includes reverting back to our previous ecommerce site, implementing cost controls that allow us to better manage expenses, and elevating the assortment of key basketball products in our stores and online.”
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