• Q1 net income down 26.4% to $12.1m
  • Net sales up 6.5% to $319m
  • Comparable store sales up 8% 

Despite posting a 26.4% fall in first-quarter net profits, US sportswear chain The Finish Line has raised its full-year guidance.

Net income slumped 26.4% for the 13-week period ended 2 June to US$12.1m. Operating income fell 25.8% to $19.7m.

During the quarter, selling, general and administrative expenses increased 10.7% to $84.8m and store closing costs jumped to $95m, from $17m the same period last year. 

Net sales rose 6.5% to $319m, while comparable store sales increased 8% on top of a 6.5% increase last year.

"As the consumer continues to redefine the retail experience, we are making investments behind an omni-channel strategy that we believe will strengthen our vendor relationships and enhance our connection with consumers," said chairman and CEO Glenn Lyon.

"While we are still in the early stages of a multi-year transformation, I have great confidence in this organisation's ability to successfully deliver on our near-term promises, while at the same time remain on a strategic course towards $2bn in total company sales and $2.50 in earnings per share by fiscal 2016."

The company has raised its full-year guidance and now expects earnings per share to rise 6-7% over the $1.53 recorded last year. This assumes an annual comparable store sales increase of 5% to 6%.