Sneaker retailer Finish Line just wrapped up its fiscal third quarter earnings report, and it sounds like the chain could be in some serious trouble.
IndyStar reports that Finish Line has announced plans to shutter up to 150 of its doors over the course of the next four years following a rapid drop in sales during the third quarter. Just how bad was it? Well, the company lost a cool $21.8 million, which equates to 49 cents a share.
In a last-ditch effort to turn things around, the chain will close as many as a quarter of its stores and also plans to promote President Sam Sato to CEO. Sato will take the place of Glenn Lyon, who has been CEO for the past 16 years.
According to Lyon, much of Finish Line's recent struggles can be attributed to a recent overhaul of its order fulfillment process. "We worked quickly to address the disruption in our system and improve our operating capabilities, increasing technical and operational resources including third-party experts," Lyon said.
Although sales have shown signs of improvement in recent weeks, the retailer still has a long way to go, and it estimates that it lost $32 million in potential sales in October alone due to warehouse issues.
Despite the struggles, Lyon seems optimistic about the future: "I am confident Sam will lead Finish Line boldly into the future as he truly understands the importance of serving the customer in an omnichannel world."
With the next quarter looking as critical as ever, hopefully the brand is able to make the adjustments needed for a turnaround. Stay tuned.