Finish Line Reports First Quarter Fiscal Year 2013 Results

  Finish Line Reports First Quarter Fiscal Year 2013 Results

Q1 comp store sales increased 8.0%; Q1 EPS of $0.24; Company Raises Full Year

Business Wire

INDIANAPOLIS -- June 29, 2012

The Finish Line, Inc. (NASDAQ: FINL) today reported results for the first
quarter, representing the 13-week period ended June 2, 2012.

For the first quarter ended June 2, 2012:

  *Consolidated net sales, inclusive of Finish Line and The Running Company,
    increased 6.5% to $319.0 million.
  *Finish Line comparable store sales increased 8.0% on top of a 6.5%
    increase for the same period a year ago.
  *Digital sales, which are included in the comparable store sales results,
    were up 28.1%.
  *Earnings per diluted share were $0.24.

“Our first quarter comparable sales performance reinforces the Finish Line’s
status as a premier destination for athletic footwear,” said Chairman and
Chief Executive Officer Glenn Lyon. “We are bringing the marquee brands and
top products in our space to our consumers across multiple channels in an
increasingly diverse way. As the consumer continues to redefine the retail
experience, we are making investments behind an omni-channel strategy that we
believe will strengthen our vendor relationships and enhance our connection
with consumers. While we are still in the early stages of a multi-year
transformation, I have great confidence in this organization’s ability to
successfully deliver on our near-term promises while at the same time remain
on a strategic course towards $2 billion in total company sales and $2.50 in
earnings per share by fiscal 2016.”

Balance Sheet

As of June 2, 2012, consolidated merchandise inventories increased 14.6% to
$236.5 million compared to $206.5 million as of May 28, 2011. For Finish Line,
merchandise inventories increased by 11.9%.

The company repurchased 1.5 million shares of its outstanding common stock in
the first quarter, totaling $32.4 million. The company has 2.3 million shares
remaining on its 5-million-share authorization.

As of June 2, 2012, the company had no interest-bearing debt and $262.0
million in cash and cash equivalents, compared to $287.0 million a year ago.


Based on first quarter results, the company now expects earnings per share for
the fiscal year ending March 2, 2013 to increase between 6 to 7% over the
$1.53 in fiscal 2012, which excludes the $0.07 impact from the 53rd week, up
from its previous guidance of mid-single digit growth. This guidance assumes
an annual comparable store sales increase of 5 to 6%.

Q1 Fiscal 2013 Conference Call Today, June 29, 2012 at 8:30 a.m.

The company will host a conference call for investors today, June 29, 2012, at
8:30 a.m. Eastern. To participate in the live conference call, dial
866-923-8645 (U.S. and Canada) or 660-422-4970 (International), conference ID
#89310021. The live conference call will also be accessible online at A replay of the conference call can be accessed
approximately two hours following the completion of the call by dialing
855-859-2056, conference ID #89310021. This recording will be made available
through Friday, July 6, 2012. The replay will also be accessible online at

About Finish Line

The Finish Line, Inc. is a premium retailer of athletic shoes, apparel and
accessories. The company has two retail divisions -- Finish Line, which
operates 640 Finish Line brand stores in malls across the U.S., and The
Running Specialty Group, which operates 19 specialty running shops in seven
states and the District of Columbia under The Running Company banner. Finish
Line stores employ more than 11,000 sneakerologists who help customers every
day connect with their sport, their life and their style. Online shopping is
available at and mobile shopping is available at Follow Finish Line on Twitter at and
“like” Finish Line on Facebook at The Running
Company stores carry a deep assortment of performance running shoes, apparel
and accessories. Their trained experts advise everyone from beginner to
advanced runners and provide free gait analysis to ensure the proper fit for
each customer. The Running Company is tightly connected to its communities,
hosting regular neighborhood group runs and sponsoring local races. More
information on The Running Company can be found at

Forward-Looking Statements

This news release includes statements that are or may be considered
“forward-looking” within the meaning of Section27A of the Securities Act of
1933 and Section21E of the Securities Exchange Act of 1934. These
forward-looking statements generally can be identified by the use of words or
phrases such as, but not limited to, “believe,” “expect,” “anticipate,”
“intend,” “plan,” “foresee,” “build”, “may,” “should,” “will,” “estimates,”
“indication”, “potential,” “optimistic,” “confidence,” “momentum”, “continue,”
“lead to”, “evolve,” “expand,” “growth” or words and phrases of similar
meaning. Statements that describe objectives, plans or goals also are
forward-looking statements.

All of these forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially from those contemplated
by the relevant forward-looking statements. The principal risk factors that
could cause actual performance and future actions to differ materially from
the forward-looking statements include, but are not limited to, the company’s
reliance on a few key vendors for a majority of its merchandise purchases
(including a significant portion from one key vendor); the availability and
timely receipt of products; the ability to timely fulfill and ship products to
customers; fluctuations in oil prices causing changes in gasoline and energy
prices, resulting in changes in consumer spending as well as increases in
utility, freight and product costs; product demand and market acceptance
risks; deterioration of macro-economic and business conditions; the inability
to locate and obtain or retain acceptable lease terms for the company’s
stores; the effect of competitive products and pricing; loss of key employees;
execution of strategic growth initiatives (including actual and potential
mergers and acquisitions and other components of the company’s capital
allocation strategy); and the other risks detailed in the company’s Securities
and Exchange Commission filings. Readers are urged to consider these factors
carefully in evaluating the forward-looking statements. The forward-looking
statements included herein are made only as of the date of this report and the
company undertakes no obligation to publicly update these forward-looking
statements to reflect subsequent events or circumstances.

                               The Finish Line, Inc.
                               Consolidated Statements of Income (Unaudited)
                               (In thousands, except per share and store data)
                                       Thirteen Weeks Ended
                                       June 2,             May 28,
                                       2012                2011
Net sales                              $  319,049          $  299,474
Cost of sales (including                 214,390           196,211    
occupancy costs)
Gross profit                              104,659             103,263
Selling, general and                      84,846              76,675
administrative expenses
Store closing costs                      95                17         
Operating income                          19,718              26,571
Interest income, net                     71                142        
Income before income taxes                19,789              26,713
Income tax expense                       7,708             10,297     
Net income                                12,081              16,416
Net loss attributable to
redeemable noncontrolling                197               -          
Net income attributable to             $  12,278          $  16,416     
The Finish Line, Inc.
Diluted earnings per share
attributable to The Finish             $  0.24            $  0.30       
Line, Inc. shareholders
Diluted weighted average                 51,403            53,973     
Dividends declared per share           $  0.06            $  0.05       
Finish Line store activity
for the period:
Beginning of period                       637                 664
Opened                                    9                   -
Closed                                   (6         )       (7         )
End of period                            640               657        
Square feet at end of period              3,457,170           3,533,930
Average square feet per                   5,402               5,379
Running Company store
activity for the period:
Beginning of period                       19                  -
Opened                                    -                   -
Closed                                   -                 -          
End of period                            19                -          
Square feet at end of period              57,302              -
Average square feet per                   3,016               -
                                       Thirteen Weeks Ended
                                       June 2,             May 28,
                                       2012                2011
Net sales                                 100.0         %     100.0         %
Cost of sales (including                 67.2              65.5       
occupancy costs)
Gross profit                              32.8                34.5
Selling, general and                      26.6                25.6
administrative expenses
Store closing costs                      -                 -          
Operating income                          6.2                 8.9
Interest income, net                     -                 -          
Income before income taxes                6.2                 8.9
Income tax expense                       2.4               3.4        
Net income                                3.8                 5.5
Net loss attributable to
redeemable noncontrolling                0.1               -          
Net income attributable to               3.9          %    5.5          %
The Finish Line, Inc.

                                         Condensed Consolidated Balance Sheets
                                         June 2,       May 28,       March 3,
                                         2012          2011          2012
                                         (Unaudited)   (Unaudited)
Cash and cash equivalents                $ 261,958     $ 287,045     $ 307,494
Merchandise inventories, net             236,545       206,501       220,405
Other current assets                     24,130        13,234        24,849
Property and equipment, net              137,749       124,021       126,997
Other assets                             31,668        27,831        31,751
Total assets                             $ 692,050     $ 658,632     $ 711,496
Current liabilities                      $ 132,402     $ 103,348     $ 138,683
Deferred credits from landlords          30,150        32,877        30,080
Other long-term liabilities              13,583        14,450        13,196
Redeemable noncontrolling interest       5,795         -             -
Shareholders' equity                     510,120       507,957       529,537
Total liabilities and shareholders'      $ 692,050     $ 658,632     $ 711,496


Media Contact:
Megan Faulkner, Corporate Communications, 317-613-6985
Investor Contact:
Ed Wilhelm, Chief Financial Officer, 317-613-6914
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