The Finish Line, Inc. reported net sales of $202.0 million for the thirteen weeks ended November 29, 2003, an increase of 37% over net sales of $147.9 million for Q3 last year. Comparable store net sales for Q3 increased 25% versus a decrease of 1% reported for the comparable thirteen-week period last year.
On a year to date basis, for the thirty-nine weeks ended November 29, 2003, net sales were $680,629,000 an increase of 30% (thirty percent) over net sales of $522,733,000 reported for the thirty-nine week period last year ended November 30,2002. Year to date comparable store net sales increased 20% (twenty percent) versus a 1% (one percent) increase reported for the comparable thirty-nine week period last year.
Mr. Alan H. Cohen (Chairman and Chief Executive Officer) stated: “We are extremely pleased with our record-breaking third quarter sales performance and the continued acceleration in all segments of our business. We began the year with an aggressive growth strategy to gain market share, and it is evident that this strategy is proving to be effective. Our focus on “elite” products within our superior selection and our premium presentation has set us apart from our competition and has brought in many new customers throughout this quarter and all year long.”
“For the quarter, footwear comparable store sales increased 23% (twenty- three percent) and, apparel/accessories comparable store sales increased 30% (thirty percent) on top of an 18% gain for apparel/accessories for Q3 LY. The positive trend of comp sales increases is encouraging as the Company experienced a 28% gain in September, 22% for October followed by a 24% increase for November. Inventory levels, as a result of front loading holiday receipts, are expected to be up 16-18 percent per square foot as of the end of Q3 and we are well positioned as we begin the holiday selling season.”
Due to sales significantly exceeding plan and improved product margins versus Q3 LY, the Company now anticipates that diluted income per share for the 3rd quarter will range from a positive $.04 to $.06 as compared to previous guidance of a diluted loss per share of $(.07) to $(.09). For Q3 LY the Company reported a diluted loss per share of $(.13). Additionally, the Company is increasing EPS guidance for the 4th quarter to a range of $.67 to $.69 per diluted share from $.63 to $.65 per diluted share. Correspondingly, full fiscal year EPS guidance is being increased from a previous range of $1.54 to $1.58 to a new range of $1.72 to $1.76. The Company expects to report earnings for Q3 on Monday, January 5th, after the market closes followed by a live conference call Tuesday morning, January 6th at 8:30 am ET.
During Q3, the Company opened 22 stores and remodeled nine existing stores. Year to date, the Company has opened a total of 58 new stores and remodeled 25 and does not anticipate opening any additional new stores in Q4. As of November 29, 2003, the Company operated 532 stores compared to 481 at November 30, 2002 an increase of 11%. In addition, store square footage increased 8% to 3,085,000 square feet compared to 2,858,000 square feet at the end of Q3 last year.
The Company did not repurchase any shares of Class A Common Stock during Q3 under the current stock repurchase authorization, which expires February 28, 2004. To date the Company has repurchased 1,861,600 shares (@ an average price of $8.34 per share) of the 2,500,000 shares authorized by the Board of Directors.
