Finish Line. Inc. was downgraded to underperform from market perform at Cowen & Company based on “skyrocketing” promotions and the impact it is having on margins and the company’s relationships with brands. Cowen cut Finish Line’s price target to $7 from $10. Analysts led by John Kernan point out that Finish Line’s gross margin has declined 20 of the last 22 quarters year-over-year. “Aggressively undercutting Nike , Adidas and Under Armour on price is not sustainable as brands eliminate allocations to undifferentiated retailers and focus on digital and differentiated experiences,” Cowen wrote. Finish Line shares are down 52.4% for the past year while the S&P 500 index is up 19.3% for the period.
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