The Finish Line, Inc. reported sales increased 6.0 percent in its first quarter ended May 28, to $299.5 million compared to $282.4 million a year ago. Comparable store sales increased 6.5 percent in the first quarter on top of an increase of 10.9 percent for the same period a year ago. Earnings from continuing operations climbed 19.7 percent to $16.4 million, or 30 cents per share, compared to income from continuing operations of $13.7 million, or 25 cents, a year ago.

Merchandise inventories increased 4.4 percent to $206.5 million at the end of the quarter compared to $197.8 million a year ago. On a per-square-foot basis, inventories were up 5.8 percent.

At quarter-end, the company had no interest-bearing debt and $287.0 million in cash and cash equivalents, up from $248.1 million at the end of the first quarter a year ago. The company repurchased 0.4 million shares of its outstanding common stock in the first quarter, totaling $9.6 million.

“Delivering growth on top of a strong performance a year ago was the story of the first quarter,” said Finish Line Chairman and Chief Executive Officer Glenn Lyon. “This is the seventh consecutive quarter that we delivered an increase in comp store sales and non-GAAP EPS. In the first quarter, we achieved 20% EPS growth on top of the strong earnings we drove a year ago. Our comp store sales increase of 6.5% in Q1 is on top of a 10.9% increase last year and we improved across virtually all other key metrics. Through consistent execution of our strategic plan, we have created a business model that has allowed Finish Line to drive sustained growth through a variety of consumer environments and external conditions. This is a great start to the new fiscal year and we are optimistic about our future and the initiatives we are undertaking to grow our existing business, expand beyond our core business and deliver returns to our shareholders.”

June Sales Update

Comparable store sales on a month-to-date basis for the period of May 29, 2011 through June 19, 2011 increased 14.5% on top of a 6.8% increase for the same period a year ago.

The Finish Line, Inc.

Consolidated Statements of Income (Unaudited)

(In thousands, except per share and store data)









 






Thirteen Weeks Ended







May 28,


May 29,







2011


2010










 









 

Net sales





$

299,474



$

282,398



Cost of sales (including occupancy costs)





 

196,211

 


 

188,428

 


Gross profit






103,263




93,970











 

Selling, general and administrative expenses




 

76,692

 


 

71,779

 


Operating income






26,571




22,191











 

Interest income, net





 

142

 


 

64

 


Income from continuing operations before income taxes





26,713




22,255











 

Income tax expense





 

10,297

 


 

8,586

 


Income from continuing operations






16,416




13,669



Loss from discontinued operations, net of income taxes




 



 


 

(23

)


Net income





$

16,416

 


$

13,646

 










 

Income per diluted share:









Income from continuing operations





$

0.30



$

0.25



Loss from discontinued operations





 



 

 

 



 


Net income





$

0.30

 

 

$

0.25

 










 

Diluted weighted average shares outstanding




 

53,973

 


 

54,297

 










 

Dividends declared per share





$

0.05

 


$

0.04

 










 

Store activity for the period:









Beginning of period






664




666



Opened











4



Closed





 

(7

)


 

(3

)


End of period





 

657

 


 

667

 


Square feet at end of period