Finish Line closing stores
Finish Line just announced it’s closing up to a quarter of its stores in the next four years, a day after Macy’s said it’s shuttering 36 of its locations this spring.
“Our third quarter performance was severely impacted by a disruption in our supply chain following the implementation of our new warehouse and order management system,” said Glenn Lyon, Chairman and Chief Executive Officer of Finish Line. “Specifically, in October, we began experiencing issues flowing fresh inventory into our stores as well as fulfilling online orders as the new system was unable to process freight at volumes necessary to support our sales plans. We worked quickly to address the disruption in our system and improve our operating capabilities, increasing technical and operational resources including third party experts. We have achieved a pickup in sales trends as the quantity and quality of our inventory improved in recent weeks. Fourth quarter-to-date comps for Finish Line, which include the fiscal month of December ended January 2, 2016, were up 6.2%. We anticipate that we’ll return to a stable operating environment during the first quarter and we will start leveraging the multiple benefits from our supply chain system enhancements,” he added.
The plan encompasses 150 Finish Line locations and will improve profitability, the athletic-wear retailer said in a statement. On average, the stores set to close make $1 million in sales a year, half of what a typical Finish Line makes.
No word yet on which location will be shut down.
Shares fell 12.1% to $16.26 in morning trading.