Finish Line upgraded on 'conservative' same-store sales guidance

Finish Line Inc. was upgraded to market perform from underperform at Cowen & Company on fiscal fourth-quarter guidance that analysts call "conservative." Last year, fourth-quarter same-store sales fell 4.5%, largely due to delayed tax refunds and a gross margin decline. In the third-quarter earnings announcement early Thursday, Finish Line reported 0.8% same-store sales growth, exceeding the 4.5% decline FactSet forecast. Cowen thinks positive trends and an easy comparison make the guidance for 3%-to-5% same-store sales decline modest. However, analysts remain cautious. "We don't see a catalyst for Finish Line's sales to meaningfully increase on a sustainable long-term basis given the amount of store closures and competitive environment," the note said. Finish Line shares are up more than 13% in Thursday trading, but down 37% for the past year. The S&P 500 index is up 18.6% for the last 12 months.

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