The Finish Line, Inc. reported a net loss of $3.9 million, or a loss og 8 cents per diluted share, for the fiscal first quarter ended June 2, versus net income of $4.4 million, or 9 cents per diluted share, for the thirteen weeks ended May 27, 2006. Consolidated net sales decreased 0.2% to $288.3 million for Q1 compared to $289.0 million reported for the year-ago period. Comparable store net sales decreased 3.9% for Q1 as compared to a 7.2% decrease reported for Q1 LY.
Merchandise inventories on a consolidated basis were $308.1 million at June 2, 2007 compared to $298.4 million at May 27, 2006. As of June 2, 2007, on a per square foot basis, consolidated inventories decreased 3%, and Finish Line store merchandise inventories decreased 1% compared to one year ago.
Alan H. Cohen, Chief Executive Officer of Finish Line, stated, “During the quarter, we made progress in our efforts to increase our sport style offerings, including sandals and canvas footwear, to better align our product mix with consumer demand. Although the retail environment remains competitive, we have put in place both product and operating initiatives that we believe will lead to improvements in our business. Our goal is to remain committed to performance and to strengthen our position in sport style product in order to satisfy the expectations of our consumers.”
Consolidated Statements of Operations (Unaudited)
(In thousands, except per share and store data)
Thirteen Weeks Ended
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June 2, May 27,
2007 2006
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Net sales $288,333 $289,046
Cost of sales (including occupancy
expenses) 211,494 203,129
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Gross profit 76,839 85,917
Selling, general, and administrative
expenses 82,507 79,626
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Operating (loss) income (5,668) 6,291
Interest income, net 463 735
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(Loss) income before income taxes (5,205) 7,026
(Benefit) provision for income taxes (1,334) 2,670
——— ———
Net (loss) income $(3,871) $4,356
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Diluted net (loss) income per share $(0.08) $0.09
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