FINISH LINE
NASDAQ: FINL
Shreyas Garg
Sudhamsh Tippireddy
STOCK OVERVIEW
 Price: 24.42
 Market Cap: 1.2B
 Beta: 1.57
 P/E: 18.35
INDUSTRY/BUSINESS OVERVIEW
 Finish Line sells shoes and other sportswear
 Competitors include Foot Locker, Nike, Adidas, Dick’s
Sporting Goods, Sports Authority, and Amazon
(somewhat)
 Advantages in the industry include: variety and price
of the products
 A major problem with most companies in the
industry is that they don’t sell many products to
women
FINISH LINE OVERVIEW
The typical customer is male and between the ages
of 18 and 29
For the Running Specialty Stores it is a typical
performance runner
Sells mostly premium products
The current leader in the running shoes category
Sacrificed some revenue this year for long term
growth
 Something you always want to see in a smaller company
THESIS
 The exclusive partnership with Macy’s gives FINL a major
advantage over its competition
 Finish Line has 651 stores which provides ample
opportunity for growth (there are about 1000 class A
malls in the USA)
 Could also expand internationally
 FINL is intelligently integrating technology into its stores
which provides for a better customer experience
PARTNERSHIP WITH MACY’S
 Finish Line announced an with Macy’s to become the
exclusive provider of athletic shoes. Finish Line will
manage the athletic footwear assortment and
inventory for all Macy’s locations and online. This will
include shops in more than 450 Macy’s department
stores in the U.S.
 The majority of Macy’s Customers are women
 This allows FINL to reach a customer base (women)
which few other companies are able to sell too.
FINL STORE WITHIN MACY’S STORE
INTEGRATION OF TECHNOLOGY
The employees have handheld scanners which
allows them to check out customers at any
place in the store (convenience)
Constantly upgrading software and their
website
Omni channel customer experience
SOME STATS
Q2 FY 2014 financial results (period ended August
31, 2013). The Company reported net sales of
$436.0 million, a 13.3% YoY increase. Its diluted EPS
for the quarter totaled $0.54, a 10.2% YoY increase.
Chairman and CEO Glenn Lyon commented, "The
combination of positive comparable sales and good
expense control drove a 10% increase in earnings
per share over last year.
VALUATION
FINL
Industry
PE
18.35
29.40
P/TBV
2.31
5.57
5 yr growth rate
3.60%
-.05%
Gross Margin
35.00%
32.50%
Pre Tax Margin
6.80%
4.30%
Net Profit Margin
4.20%
.02%
SUMMARY
Many opportunities for growth
Exclusive partnership will be highly
advantageous
Growing while the industry is stagnant