The Finish Line Inc. reported income from continued operation of $868,000, or 2 cents a share in the first quarter ended May 31, against a loss of $3.87 million, or 5 cents, a year ago. Net sales edged up 0.8% to $287.9 million from $285.8 million. Comparable store net sales increased 1.2%. By concept, comps rose 1.6% at Finish Line but dropped 7.1% at Man Alive.
The company noted that per share results reflect an 14.3% increase in diluted weighted average shares outstanding to 53,895,000 in the latest period from 47,135,000. The increase reflects the 6.5 million shares issued March 7th in connection with the previously announced settlement with Genesco Inc.
Merchandise inventories on a consolidated basis were $281.2 million at May 31, 2008, compared to $308.1 million at June 2, 2007. On a comparable per square foot basis, consolidated merchandise inventories at May 31 decreased 8%. Finish Line merchandise inventories decreased 7% and Man Alive inventories decreased 21% compared to one year ago.
“While the macroeconomic conditions remain challenging, we are encouraged by the improvement in our business during April and May, which demonstrates the progress we are making in the execution of our strategic merchandising plans and inventory management,” said Alan H. Cohen, chief executive officer of the company, in a statement. “We have decreased our inventory levels as well as improved the overall inventory aging versus last year. Our continued focus on premium performance and sport style products in the Finish Line stores drove product margins and average selling price higher during the quarter. The company's financial position is strong as we ended the quarter with $40 million in cash and no interest-bearing debt. Going forward, we will remain focused on these product and operational initiatives, which are measurably improving the company's performance and helping differentiate The Finish Line, Inc. with consumers.”
