The Finish Line, Inc. reported that net sales increased 15% to $312.2 million for the fiscal second quarter ended August 28, compared to $270.8 million reported in the year-ago period. Comparable store net sales increased 6% for Q2 on top of an increase of 21% reported for Q2 LY.

Net income for Q2 was $20.8 million, 85 cents per diluted share, an increase of 19% versus net income of $17.5 million, or 73 cents per diluted share, for Q2 LY.

Net sales increased 19% to $570.1 million for the twenty-six weeks ended August 28, 2004 compared to $478.6 million for the twenty-six weeks last year ended August 30, 2003. Comparable store net sales increased 10% for YTD on top of an 18% increase reported for YTD LY.

Net income for YTD was $31.4 million, or $1.27 per diluted share, an increase of 30% versus net income for YTD LY of $24.1 million, or $1.01 per diluted share.

CEO Alan Cohen stated, “We are pleased to report a 19% increase in net income for the second quarter of Fiscal 2005. We continue to improve operating profit with gross profit margin increasing 100 basis points (product margins increasing 60 basis points and occupancy costs improving 40 basis points), from Q2 LY. SG&A expenses increased 70 basis points versus Q2 LY primarily related to increased marketing costs in our continued effort to build Finish Line's brand awareness and drive traffic in stores and online. Our sales performance has been strong for the first three weeks of September, and our inventory is well positioned for our third quarter.”

Merchandise inventories were $241.4 million at August 28, 2004 compared to $188.9 million at August 30, 2003. On a per square foot basis, merchandise inventories at the end of Q2 increased approximately 17% (seventeen percent) compared to one year ago.

The Company operated 564 stores at August 28, 2004, an increase of 11% (eleven percent) over the 510 stores operated one year ago. Year-to-date, the Company has opened 35 new stores (of the planned 70 new stores), remodeled 14 existing stores and closed 2 stores. Total retail square footage increased 9% (nine percent) to 3,247,000 at August 28, 2004 versus 2,984,000 square feet at the end Q2 LY.

                            The Finish Line, Inc.
                Consolidated Statements of Income (Unaudited)
               (In thousands, except per share and store data)

                                   Thirteen   Thirteen   Twenty-six Twenty-six
                                     Weeks      Weeks      Weeks      Weeks
                                     Ended      Ended      Ended      Ended
                                   August 28, August 30, August 28, August 30,
                                      2004       2003       2004       2003
                                   ---------- ---------- ---------- ----------
     Net sales                      $312,162   $270,789   $570,128   $478,594
     Cost of sales (including
      occupancy expenses)            209,431    184,379    389,131   331,473
                                   ---------- ---------- ---------- ----------
     Gross profit                    102,731     86,410    180,997   147,121

     Selling, general, and
      administrative expenses         69,372     58,103    130,817   108,628
     Interest income (net)               232        130        458       330
                                   ---------- ---------- ---------- ----------
     Income before income taxes       33,591     28,437     50,638    38,823
     Income taxes                     12,765     10,910     19,243    14,753
                                   ---------- ---------- ---------- ----------
     Net income                      $20,826    $17,527    $31,395   $24,070
                                   ========== ========== ========== ==========
     Diluted weighted average
      shares outstanding              24,613     24,037     24,637    23,857
                                   ========== ========== ========== ==========
     Diluted net income per share      $0.85      $0.73      $1.27     $1.01