The Finish Line, Inc. reported net sales of $234,426,000 for the thirteen weeks ended March 1, 2003, an increase of 16% over net sales of $201,560,000 for Q4 last year which ended March 2, 2002. Comparable store net sales for Q4 increased 10% on top of an 8% increase reported for the comparable thirteen-week period last year.
For the fifty-two weeks ended March 1, 2003, net sales were $757,159,000 an increase of 8% (eight percent) over net sales of $701,426,000 reported for the prior fiscal year which ended March 2, 2002. For the year, comparable store net sales increased 3% (three percent) on top of a 4% (four percent) increase reported for the prior year.
Mr. Alan H. Cohen (President and Chief Executive Officer) stated: “We are extremely pleased with our 4th quarter sales which exceeded plan driven by renewed strength in footwear from our men’s and women’s categories along with continued strength in apparel sales. Product margins for the quarter improved slightly over the prior year. During the period, footwear comparable store sales increased 7% (seven percent) and apparel/accessories comparable store sales increased 18% (eighteen percent).”
Due to the stronger sales the Company now anticipates that diluted income per share for the 4th quarter improved to a range of $.47 to $.49 as compared to previous guidance of diluted income per share of $.35 to $.37. Last year for the 4th quarter, the Company reported diluted income per share of $.36 ($.34 after excluding a $.02 benefit from repositioning charges). For the current fiscal year net income is expected within a range of $.85 – $.87 per share ($.82 – $.84 after excluding a $.03 benefit from repositioning charges), compared to net income per share of $.75 reported for last fiscal year ($.70 after excluding a $.05 benefit from repositioning charges). We expect to report earnings for Q4 on Thursday, March 27th, after the market closes.
Not included in the above EPS guidance for Q4 and the full fiscal year is the gain the Company expects to report in Q4 from insurance proceeds related to the tornado damage, which occurred September 20, 2002. The primary reason for this gain is due to the Company’s decision to insure merchandise inventories at retail selling price. Additionally, the Company expects to incur an impairment charge in Q4 for the assets of 4-6 under performing stores. The net effect of these two items is expected to be an addition to diluted net income per share of $.15 to $.17.
During Q4, the Company did not open any new stores, but did close four stores. For the current fiscal year, the Company opened 37 new stores, remodeled 13 existing stores and closed nine stores. As of March 1, 2003, the Company operated 477 stores compared to 449 at March 2, 2002, an increase of 6%. In addition, store square footage increased 5% to 2,839,000 square feet compared to 2,694,000 square feet at the end of Q4 last year.
