A few weeks ago I mentioned how Finish Line (NASDAQ:FINL) is currently struggling and will continue to struggle in the near future. It just cut its 1st quarter estimate significantly. Analysts were estimating $.06 per share for the 1st quarter while the company guided $(.09) to $(0.11), which is a significant difference from the expected EPS.
The Finish Line comparable store net sales continue to decrease and decreased 4.1% compared to the same quarter last year. Net sales decreased 0.2% year over year.
On the bright side, even with this significant negative news, the stock only went down 3%. Seems like the market is at the point where any negative news from Finish Line is expected, and any neutral or positive news will send the stock higher.
What was surprising is that the company has so far failed to repurchase any shares in 2007 even though it still has shares left on its program that ends at the end of this year. It has repurchased shares at around this price in its current program. Does this mean it expects cheaper prices or it's running out of cash?
Disclosure: I don't have a position in FINL.