The Finish Line, Inc. posted a net loss of $3.0 million for the third quarter, or 6 cents per diluted share, after reporting a net income of $845,000, or 2 cents per diluted share in the same quarter one year ago Consolidated net sales increased 2.7% to $281.5 million for Q3 compared to $274.0 million reported for Q3 LY. Comparable store net sales decreased 3.3% for Q3 as compared to the 3.6% increase reported for Q3 LY.
Mr. Alan H. Cohen, Chairman and CEO, stated, “During Q3 we continued to shift the composition of our inventory by blending the newest technology and performance footwear with complementary sport inspired life style products. These actions enabled us to improve comparable sales results versus the second quarter, although our footwear sales for the third quarter were slightly negative on a comparable store basis.”
YEAR-TO-DATE RESULTS:
Net income for the year-to-date period was $11.3 million (24 cents per diluted share), down from net income of $32.5 million (65 cents per diluted share) for the similar period last year.
Consolidated net sales increased 0.3% to $909.2 million YTD compared to $906.8 million for YTD LY. Comparable store net sales decreased 5.8% YTD as compared to the 0.9% increase reported for YTD LY.
Total merchandise inventories on a consolidated basis were $356.9 million at November 25, 2006 compared to $311.5 million at Q3 LY. On a per square foot basis, Finish Line store merchandise inventories increased 5% compared to one year ago.
The company operated 692 Finish Line stores at November 25, 2006, an increase of 5% over the 658 stores operated one year ago. For the quarter, Finish Line opened 21 new stores, remodeled 4 existing stores and closed one store with retail square footage increasing 4% to 3,854,000 at November 25, 2006 versus 3,707,000 at November 26, 2005.
The company opened 12 new Man Alive stores during the third quarter. As of November 25, 2006, Man Alive operated 88 stores totaling 288,000 square feet. The company opened 6 Paiva stores during the quarter and as of the end of Q3 operated 12 stores totaling 47,000 square feet.
The Finish Line, Inc.
Consolidated Statements of Operations (Unaudited)
(In thousands, except per share and store data)
Thirty- Thirty-
Thirteen Thirteen nine nine
Weeks Weeks Weeks Weeks
Ended Ended Ended Ended
November November November November
25, 2006 26, 2005 25, 2006 26, 2005
-------- -------- -------- --------
Net sales $281,507 $273,980 $909,188 $906,820
Cost of sales (including
occupancy expenses) 203,639 196,432 643,578 627,474
-------- -------- -------- --------
Gross profit 77,868 77,548 265,610 279,346
Selling, general, and
administrative expenses 82,655 76,540 248,254 228,794
-------- -------- -------- --------
Operating income (loss) (4,787) 1,008 17,356 50,552
Interest income (expense), net (21) 345 864 1,406
-------- -------- -------- --------
Income (loss) before income taxes (4,808) 1,353 18,220 51,958
Provision (benefit) for income
taxes (1,828) 508 6,923 19,485
-------- -------- -------- --------
Net income (loss) $(2,980) $845 $11,297 $32,473
======== ======== ======== ========
Diluted weighted average
shares outstanding 46,909 49,058 47,882 49,605
======== ======== ======== ========
Diluted net income (loss) per
share $(0.06) $0.02 $0.24 $0.65
======== ======== ======== ========
Dividends declared per share $0.025 $0.025 $0.075 $0.075
======== ======== ======== ========
Number of stores open at end
of period: Finish Line 692 658
Man Alive 88 49
Paiva 12 -
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Total 792 707
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