NEW YORK — The Finish Line disclosed more details about its new women’s athletic chain, saying it will be called Paiva and that 200 stores are a possibility.
The specialty retailer, based in Indianapolis, also reported third-quarter earnings on Wednesday, which came in on guidance.
“This is truly a new demographic,” Finish Line chairman and chief executive officer Alan Cohen said in an interview about Paiva. “The demographic is the 25- to 40-year-old active woman, whereas at Finish Line, only about 20 percent of our business is female and the target customer is much younger — 18 to 19.”
Paiva, which is Scandinavian in origin, refers to a sun deity and light as a source of energy or strength.
“Paiva is going to be more upscale, therefore the potential locations would not be as numerous as Finish Line,” which has 659 stores, Cohen said. He cited the 200-unit objective.
In the near term, Cohen said, “we are looking to open five stores, probably around mid-April, in different parts of the country. I wouldn’t characterize this as a test. We are anticipating opening 15 the first year.”
While many other specialty retailers also have launched start-ups in the past year, including Gap with Forth & Towne and Abercrombie & Fitch with Ruehl, Finish Line is not following the pack by starting Paiva, Cohen said. “This is something we have been working on for nearly two years. We’ve done a lot of market research. We feel it’s a customer being underserved.”
He added that Paiva’s target customer, a regular exerciser and sports participant, primarily shops at full-line sporting goods stores and department stores for the active products, and boutiques such as Lucy. The mix will be about 70 percent apparel and accessories, and 30 percent footwear, with brands and private labels. Stores will average at about 4,000 square feet and will be situated in malls. The launch will include the Web and a catalogue.
In the quarter ended Nov. 26, net income was $845,000, or 2 cents a diluted share, a decrease of 62 percent, versus net income of $2.2 million, or 4 cents a diluted share in the year-ago period.
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Sales increased 16 percent to $274 million compared with $235.3 million a year ago. Comparable-store sales increased 4 percent, after an 8 percent gain a year ago.
In a statement, Cohen said sales exceeded plan, with improved product margins. The income per share of 2 cents is within the range of 1 cent to 3 cents announced in the chain’s third-quarter sales release.
He also said store openings for the Man Alive division are being accelerated. Eleven Man Alive stores opened during the third quarter and two more are planned in the fourth quarter. As of last month, Man Alive operated 49 stores.