The Finish Line reported net earnings from continuing operations jumped 91% in its second quarter ended August 30, to $13.2 million, or 24 cents a share, from $6.9 million, or 14 cents a year ago.
Sales increased 3.9% to $353.3 million from $340 million for Q207. Comparable store net sales increased 4.7%. By concept, Finish Line comparable store net sales increased 4.9% and Man Alive comparable store net sales increased 1.3%.
Including losses from discontinued operations, net earnings were $13.1 million, or 24 cents a share, for the quarter, compared with a loss of $1.8 million, or 4 cents a share, a year ago.
Merchandise inventories on a consolidated basis were $269.9 million at August 30, 2008, compared to $303.6 million at September 1, 2007. On a per square foot basis, consolidated merchandise inventories at August 30, 2008 decreased 10%. Finish Line merchandise inventories decreased 10% and Man Alive inventories decreased 4% compared to one year ago.
Alan H. Cohen, chief executive officer, stated, “While retail conditions remain challenging, we are pleased by the improvement in our operating performance and the continued progress we are making in the execution of our strategic merchandising plans and inventory management. We have maintained our focus on inventory quality while decreasing the overall levels by 10% per square foot. As a result, we continued to see higher product margins and a higher average selling price during the quarter. The company’s financial position remains strong as we ended the quarter with $65 million in cash, an improvement of $31 million year over year, and no interest-bearing debt.”
For the twenty-six weeks, income from continuing operations of $14.1 million, or 26 cents a share, compared with income from continuing operations of $4.3 million, or 9 cents, a year ago. Net sales increased 2.5% to $641.3 million for YTD compared to $625.7 million for YTD LY. Comparable store net sales increased 3.1% for YTD versus a 4.4% decrease reported for YTD LY.
