Finish Line Profits Drop

For the quarter ending Feb. 25, income was $28.1 million or 58 cents per share, down slightly from $28.2 million, or 57 cents per share, for the same period last year. Analysts expected the company to earn an average of 59 cents per share based on earnings of $400.8 million. The results included a $2.5-million impairment charge related to 12 underperforming stores and an adjustment to the company's effective tax rate, which resulted in an additional tax expense of $1.4 million. Meanwhile, sales for the quarter increased 10% to $399.2 million from $361.4 million in the year ago period.

"Fiscal 2006 was a year of investment for Finish Line" said chief executive Alan Cohen, noting that the firm completed the integration and expansion of its Man Alive chain and will launch a new women's concept, Paiva in April. The Indianapolis-based company, which currently operates 657 stores, plans to open 100 new stores based on its Finish Line, Man Alive and Paiva concepts during its 2007 fiscal year, he said. Cohen said the company's website continues to be the fastest growing segment of its business with a sales growth of more than 40% during 2006 on top of a 67% sales growth in the prior year.

For fiscal 2006, income was down overall dropping nearly $1 million from $61.3 million, or $1.24 per share, in fiscal 2005 to $60.5 million, or $1.23 per share, for the current year. Revenue rose during the period from $1.17 billion in the prior year to $1.31 billion as net sales increased 12% from last year's $1.17 billion to a current $1.31 billion. Comparable store sales, however, were flat at 1% compared to a 9% increase last year.