• Q1 profit fell 62.6% to $4.5m
  • Sales up 10% to $351.1m 
  • Company CEO "pleased" with performance 

Sportswear retailer The Finish Line has seen its first-quarter profit more than halve after increased costs related to the launch of its business in Macy's department stores offset higher sales.

The Indianapolis-based company, which operates 652 stores, said income tumbled to US$4.5m for the 13 weeks to 1 June, compared to $12.1m in the same period last year. 

Selling, general and administrative expenses rose 17.1% to $99.4m from $84.8m the prior year.

Net sales increased 10% to $351.1m from $319m last year, while comparable store sales were up 2.4%.

"We are pleased with the start to fiscal 2014 as improving trends in our Finish Line running business combined with continued strength in basketball and disciplined expense management drove our results," said chairman and CEO Glenn Lyon.

"Strategically, the quarter was marked by significant progress on our key growth initiatives including the well-received launch of our Macy's business in stores and online and the expansion of the Running Specialty Group footprint with the acquisition of some very productive doors."

"We have clear vision and sound strategies in place to transform our company into a premier, multi-divisional, omni-channel retailer and drive increased value for our shareholders," Lyon added.