The Finish Line Inc. reported earnings rose 6.1 percent in its second quarter ended Aug. 31, to $26.5 million, or 54 cents a share, exceeding Wall Street's consensus target of 45 cents with the aid of expense controls and share buybacks. Consolidated net sales grew 13.3 percent to $436.0 million with Finish Line comparable store sales increasing 0.9 percent

“We are pleased to have delivered a solid second quarter performance,” said Chairman and Chief Executive Officer, Glenn Lyon. “The combination of positive comparable sales and good expense control drove a 10 percent increase in earnings per share over last year. At the same time, we continued to make good progress building our business with Macy’s and growing our Running Specialty Group. Looking ahead, we are cognizant of the headwinds currently facing the retail industry and this has been incorporated into our near-term planning. We remain confident that our strategy to create a leading multi-divisional, omni-channel business will lead to sustainable sales and earnings growth and increased shareholder value over the long term.”

Balance Sheet
As of August 31, 2013, consolidated merchandise inventories increased 18.1 percent to $296.0 million compared to $250.6 million as of September 1, 2012. The increase resulted primarily from the start-up of Macy’s business. For Finish Line, merchandise inventories decreased 0.5 percent.

The company repurchased 250,000 shares of its common stock in the second quarter, totaling $5.5 million. The company has 4.3 million shares remaining on its current Board authorized repurchase plan.

















 






The Finish Line, Inc.







Consolidated Statements of Income (Unaudited)







(In thousands, except per share and store/shop data)

















 






Thirteen Weeks Ended



Twenty-Six Weeks Ended







August 31,



September 1,



August 31,



September 1,







2013



2012



2013



2012

















 

Net sales





$

436,030



$

385,011



$

787,083



$

704,060


Cost of sales (including occupancy costs)





 

289,693



 

250,461



 

533,751



 

464,851


Gross profit






146,337




134,550




253,332




239,209

















 

Selling, general and administrative expenses






103,455




94,711




202,811




179,557


Store closing costs





 

17



 

325



 

203



 

420


Operating income






42,865




39,514




50,318




59,232

















 

Interest income, net





 

10



 

58



 

24



 

129


Income before income taxes






42,875




39,572




50,342




59,361

















 

Income tax expense





 

16,682



 

15,136



 

19,635



 

22,844


Net income






26,193




24,436




30,707




36,517


Net loss attributable to redeemable noncontrolling interest





 

314



 

537



 

875



 

734


Net income attributable to The Finish Line, Inc.





$

26,507



$

24,973



$

31,582



$

37,251

















 

Diluted earnings per share attributable to The Finish Line, Inc.
shareholders





$

0.54



$

0.49



$

0.64



$

0.72

















 

Diluted weighted average shares





 

48,757



 

50,866



 

48,744



 

51,135

















 

Dividends declared per share





$

0.07



$

0.06



$

0.14



$

0.12

















 

Finish Line store activity for the period:
















Beginning of period






651




640




645




637

About The Author

Thomas J. Ryan

Thomas J. Ryan Senior Business Editor | SGB Media tryan@sgbonline.com | 917.375.4699

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