Finish Line adopts poison pill after "recent share accumulations"

Sporting goods retailer Finish Line Inc said on Monday its board adopted a shareholder rights plan after "recent share accumulations".

The rights plan, also known as a "poison pill", will be triggered if a party takes 12.5 percent ownership and will expire on Aug. 28, 2020, the company said.

UK-based Sports Direct International Plc , one of Finish Line's top shareholders, raised its stake in the company to 19.9 percent on June 21 from 9.2 percent on May 17, according to a regulatory filing.

Finish Line also cut its full-year adjusted profit forecast to 50-60 cents per share from $1.12-$1.23 per share, and said it expects sales and gross margin to remain challenged through the fiscal year.

Analysts on average had expected earnings of $1.10 (0.8501 pounds) per share, according to Thomson Reuters I/B/E/S.

Finish Line also said it expected current-quarter sales to be $469.4 million, while analysts estimated revenue of $477.2 million. The company attributed the decline to a "promotional" market and "pressure on gross margin from increased markdowns".