The Finish Line: Footwear giant has extra bounce in its step

Helping consumers run faster and jump higher always will be top priority in the athletic footwear industry. The Finish Line Inc. (Nasdaq:FINL), however, hopes a slight variation on that approach will help it clear the hurdle of what promises to be a rough holiday run in retail.

Finish Line will never stray far from money-making brands such as Nike (NYSE:NKE), adidas and New Balance. The Indianapolis small cap, which owns about 800 mall-based stores nationwide, was built on top-of-the-line athletic shoes and apparel aimed at the young male demographic. And providing more choices for those consumers has kept the chain competitive.

“Finish Line's primary point of difference is selection,” Kevin Wampler, the company’s chief financial officer, said in an email to SmallCapInvestor.com. “On average, our stores carry 600 to 800 unique styles of footwear, while the competition (Foot Locker Inc., DSW Inc.) might carry 200 to 300.”

That selection is set to widen still, as Finish Line ventures into other fashion areas, including casual men’s lines such as Greedy Genius and Yums, as well as women’s brands such as Pink Dice and Bebe Sport.

“The company is endeavoring to bring in more lifestyle footwear and apparel, including brands not offered by Foot Locker,” John Shanley, an analyst for Susquehanna Financial Group, said in an email. But it’s too early to determine if this strategy will succeed.”

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