Citi analyst Kate McShane downgraded Finish Line (FINL) to Sell and cut her price target for the shares to $5 from $14 after the company preannounced a Q2 miss and cut its outlook for the year.

The shares in premarket trading are down 26%, or $2.71, to $7.71. The marketplace for athletic footwear became more promotional as Q2 progressed but Finish Line's earnings reduction appears worse than the market expected, McShane tells investors in a research note. She believes the competitive environment among athletic retailers "has only become more difficult" and that Finish Line suffers from being a smaller mall- based chain relative to Dick's Sporting Goods (DKS) and Foot Locker (FL).

FBR Capital this morning also downgraded Finish Line.