The Finish Line reported net sales of $291.2 million for the first quarter ended May 28, 2005, an increase of 13% over net sales of $258.0 million for Q1 last year. Comparable store net sales for Q1 increased 2% on top of a 14% increase reported for the comparable thirteen-week period last year.
The net sales reported above for Q1 include the net sales for Man Alive, a wholly owned subsidiary of The Finish Line, Inc., which was acquired on January 29, 2005. However, the net sales of Man Alive are not included in the comparable store net sales for either period reported.
Mr. Alan H. Cohen (Chairman and Chief Executive Officer) stated: “We are pleased to report our tenth consecutive quarterly comparable store sales gain. The 2% gain for the quarter was on top of a combined two-year comparable increase of 28%. Sales were lead by premium product including new technologies and marquee shoes from our brand partners and resulted in an 8% increase in the average selling price of footwear and improved product margins for the quarter. Our inventory level remains on plan and is expected to be up 2-4% on a comparable per square foot basis and fresher than one year ago. These results, going against our most difficult quarterly comparisons for the year, give us positive momentum as we enter the second quarter and prepare for the important back-to-school selling season.”
The company expects that diluted earnings for the 1st quarter will be at the mid to high end of the guidance range of 24 cents to 26 cents per share. For Q1 LY, the company reported $.21 diluted earnings per share.
During Q1, the company opened 28 new Finish Line stores, remodeled seven existing stores and closed one store. The company also opened one Man Alive store, a new prototype, during this period. For Fiscal 2006, the company plans to open 70 new Finish Line stores, remodel 25 existing stores and close 3-5 stores. Additionally, the company plans to open 10-15 Man Alive stores during the year. As of May 28, 2005, the Company operated 625 Finish Line stores compared to 550 at May 29, 2004. In addition, Finish Line store square footage increased 12% to 3,547,000 square feet compared to 3,164,000 square feet at May 29, 2004. As of May 28, 2005, Man Alive operated 38 stores totaling 107,000 square feet.
The company did not repurchase any Class A Common Shares during Q1 under the current share repurchase authorization, which expires December 31, 2007.
The company has experienced, and expects to continue to experience, significant variability in net sales and comparable store net sales from quarter to quarter. Therefore, the results of the periods presented herein are not necessarily indicative of the results to be expected for any other future period or year.
