Finish Line Comps Rise 6.0% for Fiscal Second Quarter

The Finish Line, Inc. reported record net sales of $312.2 million for the fiscal second quarter ended August 28, an increase of 15% over net sales of $270.8 million for Q2 last year. Comparable store net sales for Q2 increased 6% on top of an increase of 21% reported for the comparable thirteen-week period last year. The inclusion of internet sales had the effect of increasing Q2 and year-to-date comparable sales by 1%.

On a year to date basis, for the twenty-six weeks ended August 28, 2004, net sales were $570,128,000 an increase of 19% (nineteen percent) over net sales of $478,594,000 reported for the twenty-six week period last year ended August 30,2003. Year to date comparable store net sales increased 10% (ten percent) on top of an 18% (eighteen percent) increase reported for the first half of last year.

Mr. Alan H. Cohen, Finish Line's Chairman and Chief Executive Officer stated: “We are pleased to have achieved a strong comparable sales gain of 6% (versus 21% for Q2 LY) which included a 4% increase for August (versus 29% for August LY). These results against strong comparisons and the delayed Back-to-School selling season give us confidence as we enter the second half of our fiscal year.”

Inventory levels are expected to be up 16-18 percent per square foot as of the end of Q2 and reflect increased levels due to the Labor Day calendar shift, the later Back-To-School selling season in the Northeast and other markets along with inventory on hand for the 35 new stores and 12 remodeled stores to be opened in Q3.

The Company reconfirms that diluted earnings per share for the 2nd quarter is expected to range from 85 cents to 87 cents. For Q2 LY, the Company reported diluted earnings per share of 73 cents.

During Q2, the Company opened 14 stores and remodeled six existing stores. As of August 28, 2004, the Company operated 564 stores compared to 510 at August 30, 2003, an increase of 11%. In addition, store square footage increased 9% to 3,247,000 square feet compared to 2,984,000 square feet at the end of Q2 last year.