Why Finish Line, Inc. Stock Plunged Today

Shares of The Finish Line Inc. (NASDAQ: FINL) were down 19.4% as of 2 p.m. EDT Tuesday, after the footwear retailer announced disappointing preliminary results and a new shareholder-rights plan to stave off a takeover.

For its fiscal second quarter ended Aug. 26, Finish Line's sales declined 3.3% year over year to $469.4 million, driven primarily by a 4.6% decline in comparable sales. On the bottom line, that should translate to earnings per share in the range of $0.08 to $0.12. Analysts, on average, were expecting significantly higher earnings of $0.38 per share on revenue of $477.2 million.

Image source: The Finish Line.

Source: Fool.com