Finish Line Reports First Quarter FY 2011 Results

INDIANAPOLIS, June 24 /PRNewswire-FirstCall/ — The Finish Line, Inc. (Nasdaq:
FINL) today reported results for the first quarter fiscal year 2011,
representing the 13-week period ended May 29, 2010.

First Quarter Results

Net sales increased 9.0% to $282.4 million in the first quarter compared to
$259.1 million a year ago. Comparable store net sales increased 10.9% in the
first quarter compared to a 3.9% comparable store net sales decline for the same
period a year ago.

For the period, the company reported income from continuing operations of $13.7
million, or $0.25 per diluted share, compared to income from continuing
operations of $1.8 million, or $0.03 per diluted share, a year ago.

Consolidated merchandise inventories decreased by 18.1% to $197.8 million at the
end of the quarter compared to $241.6 million a year ago. Finish Line inventory
declined 15.6% overall and 12.8% on a per-square-foot basis.

As of May 29, 2010, the company had no interest-bearing debt and $248 million in
cash and cash equivalents, up from $119 million at the end of the first quarter
a year ago.

“We are off to a strong start this fiscal year,” said Finish Line Chief
Executive Officer Glenn Lyon. “We posted a solid same-store sales increase and
continued to make progress on effectively managing expenses as well as improving
product margin and inventory efficiency. While customer traffic continues to be
inconsistent, we will remain focused on our premium position in the marketplace
and invest appropriately for continued growth.”

June Sales Update

Comparable store net sales on a month-to-date basis for the period of May 30 to
June 22, increased 7.0% compared to a 12.5% decline for the same period one year
ago.

Q1 Fiscal Year 2011 Conference Call Tomorrow, June 25

The company will host a conference call for investors Friday, June 25, 2010 at
8:30 a.m. Eastern. To participate in the conference call, dial 660-422-4970,
conference ID#80660069. To listen online, visit www.finishline.com. A replay of
the conference call can be accessed approximately two hours following the
completion of the call at 800-642-1687, conference ID#80660069. This recording
will be made available through Tuesday, June 29, 2010. In addition, the replay
will be available on the Web at www.finishline.com.

Q2 Fiscal Year 2011 Release/Conference Call Date September 23/24

The company expects to report second quarter results on Thursday, September 23,
2010 after market close followed by a conference call on Friday, September 24,
2010 at approximately 8:30 a.m. Eastern.

About Finish Line

The Finish Line, Inc. is a premium athletic footwear store and one of the
nation’s largest mall-based specialty retailers, offering a large selection of
performance and everyday sport footwear, apparel and accessories for men, women
and kids. The Finish Line, Inc. is publicly traded on the NASDAQ Global Select
Market under the symbol FINL. The company operates 667 Finish Line stores in 47
states and offers online shopping at www.finishline.com.

Forward Looking Statements

The company has experienced, and expects to continue to experience, significant
variability in net sales, net income (loss) 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.

Certain statements contained in this press release regard matters that are not
historical facts and are forward looking statements (as such term is defined in
the rules promulgated pursuant to the Securities Act of 1933, as amended).
Because such forward looking statements contain risks and uncertainties, actual
results may differ materially from those expressed in or implied by such forward
looking statements.

Factors that could cause results of the company to differ materially include,
but are not limited to: changing consumer preferences; the company’s inability
to successfully market its footwear, apparel, accessories and other merchandise;
price, product and other competition from other retailers (including internet
and direct manufacturer sales); the unavailability of products; the inability to
locate and obtain favorable lease terms for the company’s stores; the loss of
key employees; the effect of economic conditions, depressed demand in the
housing market and unemployment rates; management of growth, the outcome of
litigation, and the other risks detailed in the company’s Securities and
Exchange Commission filings.

Readers are cautioned not to place undue reliance on forward-looking statements,
which speak only as of the date hereof. The company undertakes no obligation to
release publicly the results of any revisions to these forward looking
statements that may be made to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events.

The Finish Line, Inc.
Consolidated Statements of Operations (Unaudited)
(In thousands, except per share and store data)

Thirteen Weeks Ended
——————–
May 29, May 30,
2010 2009
—- —-

Net sales $282,398 $259,096
Cost of sales (including occupancy costs) 188,428 182,722
——- ——-
Gross profit 93,970 76,374

Selling, general and administrative expenses 71,779 73,154
Store closing costs – 231
— —
Operating income 22,191 2,989

Interest income, net 64 104
— —
Income from continuing operations before
income taxes 22,255 3,093

Income tax expense 8,586 1,334
—– —–
Income from continuing operations 13,669 1,759
Loss from discontinued operations, net of
income taxes (23) (2,367)
— ——
Net income (loss) $13,646 $(608)
======= =====

Income (loss) per diluted share:
Income from continuing operations $0.25 $0.03
Loss from discontinued operations – (0.04)
Net income (loss) $0.25 $(0.01)
===== ======

Diluted weighted average shares outstanding 54,297 54,408
====== ======

Dividends declared per share $0.04 $0.03
===== =====

Store activity for the period (Finish Line
only):
Beginning of period 666 689
Opened 4 -
Closed (3) (5)
End of period 667 684
=== ===
Square feet at end of period 3,579,976 3,698,519
Average square feet per store 5,367 5,407

Thirteen Weeks Ended
——————–
May 29, May 30,
2010 2009
—- —-
Net sales 100.0% 100.0%
Cost of sales (including occupancy costs) 66.7 70.5
—- —-
Gross profit 33.3 29.5

Selling, general and administrative expenses 25.4 28.2
Store closing costs – 0.1
— —
Operating income 7.9 1.2

Interest income, net – -
— —
Income from continuing operations before
income taxes 7.9 1.2

Income tax expense 3.1 0.5
— —
Income from continuing operations 4.8 0.7
Loss from discontinued operations, net of
income taxes – (0.9)
Net income (loss) 4.8% (0.2)%
=== =====

Condensed Consolidated Balance
Sheets

May 29, May 30, February 27,
2010 2009 2010
—- —- —-
(Unaudited) (Unaudited)
ASSETS
——
Cash and cash equivalents $248,090 $118,959 $234,508
Merchandise inventories, net 197,750 241,571 190,894
Other current assets 7,811 16,215 18,205
Property and equipment, net 132,041 166,996 135,943
Other assets 31,129 39,575 30,718
Total assets $616,821 $583,316 $610,268
======== ======== ========

LIABILITIES AND SHAREHOLDERS’
EQUITY
—————————–
Current liabilities $104,892 $95,363 $114,943
Deferred credits from landlords 38,863 49,546 40,006
Other long-term liabilities 14,705 14,877 13,169
Shareholders’ equity 458,361 423,530 442,150
Total liabilities and
shareholders’ equity $616,821 $583,316 $610,268
======== ======== ========

Media Contact: Investor Contact:
Patrick Dolan Ed Wilhelm
Corporate Communications Chief Financial Officer
317.613.6827 317.613.6914

SOURCE The Finish Line, Inc.