Finish Line Reports Second Quarter Sales
INDIANAPOLIS--(BUSINESS WIRE)--Sept. 2, 1999--The Finish Line, Inc. (Nasdaq:FINL - news) reported net sales of $165,994,000 for the thirteen weeks ended August 28, 1999, an increase of 15% (fifteen percent) over net sales of $144,719,000 for the same thirteen week period last year ended August 29, 1998. Comparable store net sales for this thirteen week period decreased 1% (negative one percent) versus flat sales (zero percent change) reported for the comparable thirteen week period last fiscal year. Monthly comparable store net sales were a -1% (negative one percent) decrease for June, a -2% (negative two percent) for July followed by a 1% (one percent) increase for August.
For the second quarter, comparable net footwear sales increased approximately 4% (four percent) while comparable net sales for apparel/accessories decreased approximately 16% (negative sixteen percent).
YEAR TO DATE:
Net sales for the twenty-six weeks ended August 28, 1999 were $298,290,000, a 14% (fourteen percent) increase over net sales of $261,321,000 reported for the same period reported last year. Comparable store net sales decreased approximately 3% (negative three percent) for the twenty-six week period ended August 28, 1999 versus a 4% (four percent) increase for the same period the prior year.
Mr. Alan H. Cohen (President and Chief Executive Officer) stated: `Overall sales performance improved during the 2nd quarter of this year versus the first quarter, but not as much as expected especially with regard to our apparel business. Footwear continues to drive our business and footwear comparable store sales increased each month of the quarter culminating in a 7% increase for August. However, the negative trends have continued in our apparel category with sales adversely affected by a more promotional environment and a fashion shift by our primary customer from authentic athletic brands to more contemporary styles and brands. The majority of the decline in comparable store apparel sales resulted from a significant decrease in the average per unit selling price. Athletic footwear brands have continued to perform well through this apparel fashion shift and remain the footwear brands of choice for our primary customers. Footwear sales for Q2 were led by Nike and adidas with continued strong performance by niche brands, K-Swiss, New Balance and Saucony. The running, tennis, sandals and casual departments experienced strong sales during the quarter, but were partially offset by poor sales in the basketball department, which suffered from tough comparisons to Jordan sell-throughs from the prior year.'
`The selling environment during the second quarter was promotional and product margins are expected to be down moderately versus last year. During this down apparel cycle, we are continuing to strengthen our emphasis on footwear, including inventory investment and product presentation at the store level. We are monitoring total inventories closely and expect single digit per square foot decreases versus the end of Q2 last year with apparel inventory expected to be down in the high teens on a per square foot basis compared to last year.'
`During these difficult and uncertain times in our industry, it becomes even more important to monitor inventory levels closely, maintain strict expense control throughout our Company and preserve and carefully use our capital. We intend to remain focused on these important issues while still growing our retail square footage through new store openings and the remodeling/expanding of existing stores.'
`During this past quarter, Finish Line successfully launched our initiative to sell over the internet under our web site www.finishline.com. Although we are not providing sales projections for this project, we feel E-Commerce will provide an important vehicle to reach and service our consumer, in addition to our bricks-and-mortar stores.'
During the second quarter, the Company opened 13 new stores and remodeled/expanded two existing stores. As of August 28, 1999, the Company was operating 384 stores compared to 330 at August 29, 1998 an increase of sixteen percent. In addition, store square footage increased approximately 23% to 2,290,000 square feet compared to 1,863,000 square feet at August 29, 1998. The Company is currently operating stores in 40 states. The Company expects to open approximately 50 new stores for the full fiscal year and remodel/expand approximately 18 existing stores equating to approximately 17% increase in retail square footage.
The Company did not repurchase any common stock during the second quarter under the stock repurchase authorization which expires December 1999. Therefore, including previously purchased common stock, to date the Company has repurchased 1,313,000 shares of the 2,600,000 shares authorized by the Board of Directors.
The Company has experienced, and expects to continue to experience, significant variability in net sales and comparable store net sales from quarter to quarter. Therefore, the results of the periods presented herein are not necessarily indicative of the results to be expected for any other future period or year. Except for the historical information contained herein, the matters discussed in this release are forward looking statements that involve risks and uncertainties include, but are not limited to, product demand and market acceptance risks, the effect of economic conditions, the effect of competitive products and pricing, the availability of products, management of growth, and the other risks detailed in the Company's Securities and Exchange Commission filings.
The Finish Line is a specialty retailer of men's, women's and children's brand name athletic and lifestyle footwear, apparel and accessories currently operating 387 stores in 40 states.
The Company has made available a replay conference call covering the second quarter by dialing 1-706-645-9291 (Conference ID no. = 732000). This replay will be available for 48 hours subsequent to the time of this release.
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Contact:
The Finish Line, Inc., Indianapolis
Steven J. Schneider, 317/899-1022, Extension 3350 |
