The Finish Line, Inc. reported consolidated net sales of $274.0 million for the thirteen weeks ended November 26, 2005, a 16% increase over net sales of $235.3 million for last year's third quarter. Comparable store net sales for Q3 increased 4% on top of an 8% increase reported for the comparable 13-week period last year.
For the thirty-nine weeks ended November 26, 2005, consolidated net sales were $906.8 million an increase of 13% over net sales of $805.4 million reported for the thirty-nine weeks ended November 27,2004. Year-to-date, comparable store net sales increased 1% on top of a 9% increase reported for the comparable thirty-nine week period last year.
Mr. Alan H. Cohen, Finish Line's chairman and CEO stated: “We are pleased with our 3rd quarter sales which exceeded plan and were driven by renewed strength in footwear from our men's and kids' categories. Softgood sales rebounded from the negative 8% comp reported for the 2nd quarter to post a flat comp for Q3 led by a 5% comparable sales gain for November. This is a positive indicator as we enter the holiday selling season.”
As a result of sales exceeding plan, the company now anticipates that diluted income per share for the 3rd quarter will range from a penny to 3 cents as compared to previous guidance of a diluted loss per share of a penny to 3 cents. For Q3 LY, the company reported restated diluted income of 4 cents per share. For Q4, which will end February 25, 2006, comparable sales guidance is being increased to a range of 1%-2% (from flat) with total sales of $407 million (up from $401 million). In addition, the company now anticipates that diluted income per share will range from 58 cents to 60 cents as compared to previous guidance of 56 cents to 58 cents. Full fiscal year comp sales guidance is 1% (up from flat) with full year sales of $1.314 billion (up from $1.3 billion). For the current fiscal year, net income is now expected within a range of $1.22 to $1.26 per share up from previous guidance of $1.16 to $1.21 per share.
During Q3, the company opened 20 new Finish Line stores, remodeled six existing stores and closed one store. Year-to-date, Finish Line has opened a total of 64 new stores, remodeled 21 existing stores and closed four stores. The company plans to open fouradditional Finish Line stores in Q4 along with three remodels. As of November 26, 2005, the company operated 658 Finish Line stores compared to 592 at November 27, 2004 an increase of 11%. In addition, Finish Line store square footage increased 9% to 3,707,000 square feet compared to 3,389,000 square feet at the end of Q3 LY.
The company opened 11 new Man Alive stores during the third quarter and plans for two additional store openings in Q4. As of November 26, 2005, Man Alive operated 49 stores totaling 148,000 square feet.
The company repurchased 1,224,600 shares of Class A Common Stock during Q3 under the current stock repurchase authorization, which expires December 31, 2007.
