Why Shares of The Finish Line Dropped Today

Shares of footwear retailer The Finish Line (NASDAQ: FINL) slumped on Friday following an analyst downgrade. This comes less than two months after the company reported its second-quarter results, which featured a comparable-store sales decline and slashed full-year earnings guidance. Finish Line stock was down about 12% at 11:30 a.m. EST.

Cowen downgraded shares of Finish Line on Friday, dropping its rating to underperform from market perform, and slashing its price target to $7 from $10. The reason for the downgrade was the belief that the company's promotional activity is unsustainable, which will hurt not only margins but also relationships with major brands.

Image source: The Finish Line.

Source: Fool.com