Finish Line to Close 150 Stores

[I-10east]

More bad news for a retailer and malls all around the country. Finish Line to close 150 stores amid falling sales, names new CEO.

The Finish Line, the retail chain specializing in athletic shoes, named a new CEO Thursday and said it will close about 150 stores amid falling sales.
Sam Sato, currently the retailer's president, has been promoted to replace Glenn Lyon as CEO, effective Feb. 28. Lyon, who is also chairman of the board of directors, will serve as executive chairman of the board until the end of the year and transition to the role of non-executive chairman next year. In a statement, Lyon said the change in leadership has been planned for "the past few years."

The Finish Line, the retail chain specializing in athletic shoes, named a new CEO Thursday and said it will close about 150 stores amid falling sales.
Sam Sato, currently the retailer's president, has been promoted to replace Glenn Lyon as CEO, effective Feb. 28. Lyon, who is also chairman of the board of directors, will serve as executive chairman of the board until the end of the year and transition to the role of non-executive chairman next year. In a statement, Lyon said the change in leadership has been planned for "the past few years."

With sales at its brick-and-mortar stores falling, the Indianapolis-based company also announced plans to close "up to 150 stores" in the next four years, or about 25 % of its total stores. "These stores produce average annual sales of approximately $1 million, a portion of which the company expects to recapture at nearby locations and through its digital sites," it said.
Meanwhile, sales for the fiscal third quarter fell 3.5% year-over-year to $382.1 million. The company attributed the sales drop to "a disruption in our supply chain." Its comparable store sales fell 5.8%.

It also swung to a net loss of $21.8 million for the quarter from $2.6 million of profit a year ago. Diluted loss per share was 49 cents, worse than 3 cents of loss estimated by analysts.

Shares fell 12.1% to $16.26 in morning trading.

"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," Lyon said in a statement

http://www.cnbc.com/2016/01/07/finish-line-to-close-150-stores-amid-falling-sales-names-new-ceo.html?

[spuwho]

Perhaps the market for $350 Air Jordans and LBJ's has crashed finally.

People finally figured out that skill can be exposed in any shoe, but the shoe cant make them skilled, just cooler.

[JaxAvondale]

There is still a demand for high end sneakers but these shoes are exclusively offered online by Nike. There is no need to go into the store anymore.

[copperfiend]

Perhaps the market for $350 Air Jordans and LBJ's has crashed finally.

People finally figured out that skill can be exposed in any shoe, but the shoe cant make them skilled, just cooler.

Don't think that has anything to do with it. Just more brick and mortar extinction.