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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): SEPTEMBER 3, 1998
THE FINISH LINE, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE 0-20184 35-1537210
(STATE OR OTHER JURISDICTION (COMMISSION FILE NUMBER) (IRS EMPLOYER
OF INCORPORATION) IDENTIFICATION NO.)
3308 N. MITTHOEFFER ROAD 46236
INDIANAPOLIS, INDIANA (ZIP CODE)
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (317) 899-1022
NONE
(FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT)
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ITEM 5. OTHER EVENTS.
On September 3, 1998, the Company issued a press release which announced,
among other matters, the Company's stock repurchase program. A copy of the
September 3, 1998 press release is attached as Exhibit 99.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits:
99 Press release dated September 3, 1998
2
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
THE FINISH LINE, INC
Dated: September 9, 1998 By: /s/ STEVEN J. SCHNEIDER
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Steven J. Schneider,
Senior Vice President - Finance and
Chief Financial Officer and Assistant
Secretary
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Finish Line Reports Second Quarter Sales and
Announces Stock Buyback Authorization
INDIANAPOLIS -- September 3, 1998 - The Finish Line, Inc. (NASDAQ:FINL)
reported net sales of $144,719,000 for the thirteen weeks ended August 29, 1998,
an increase of 22% (twenty-two percent) over net sales of $118,727,000 for the
same thirteen week period last year ended August 30, 1997.
Comparable store net sales for this thirteen week period were flat (zero
percent change) versus a 5% (five percent) increase reported for the comparable
thirteen week period last fiscal year. Monthly comparable store net sales showed
a 3% (three percent) increase for both June and July followed by a 3% (three
percent) decrease for August.
For the second quarter, comparable net footwear sales increased
approximately 4% (four percent) while comparable net sales for
activewear/accessories decreased approximately 11% (eleven percent). Merchandise
inventories at the end of the quarter exceeded plan, but were lower on a per
square foot basis than last year.
YEAR TO DATE:
Net sales for the twenty-six weeks ended August 29, 1998 were $261,321,000,
a 27% (twenty-seven percent) increase over net sales of $206,264,000 reported
for the same twenty-six weeks reported last year. Comparable store net sales
increased approximately 4% (four percent) for the twenty-six week period ended
August 29, 1998 versus a 3% (three percent) increase for the same period the
prior year.
Mr. Alan H. Cohen (President and Chief Executive Officer) stated: "As
presented in our August 12, 1998 press release, the overall tone of business for
our second quarter started reasonably well through June and most of July as we
recorded three percent same store sales gains for each of these months.
Beginning the last week of July, footwear sales softened and the
apparel/accessories category continued its slide resulting in our first monthly
same store sales decline during the August sales period in the last five years.
Same store sales for the month of August have increased 2%, 1%, 18% and 10% for
the previous four years, respectively. Although footwear sales were
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not as strong as expected with a 4% comp gain for the quarter, apparel sales
were the biggest disappointment declining 11% for the quarter. Apparel sales
have been adversely affected this year versus last year by a more promotional
environment and an apparent fashion shift by our primary customer from authentic
athletic brands to more contemporary styles. Athletic footwear brands have
continued to perform through this fashion shift led by Nike and Adidas,
especially in the running category. Because of our second quarter performance,
these adverse fashion trends and the continuing promotional environment in our
industry, we remain cautious for the third and fourth quarters of this fiscal
year."
During the second quarter, the Company opened 16 new stores,
remodeled/expanded six existing stores and closed two stores. As of August 29,
1998, the Company was operating 330 stores compared to 281 at August 30, 1997,
an increase of seventeen percent. In addition, store square footage increased
approximately 35% to 1,863,000 square feet compared to 1,375,000 square feet at
August 30, 1997. The Company is currently operating stores in 36 states.
The Company also announced a stock repurchase program. The Board of
Directors has authorized the Company to purchase on the open market or in
privately negotiated transactions, through December 31st, 1999, up to 2.6
million shares of the Company's Class A Common Stock, or approximately 10% (ten-
percent) of the aggregate Class A and Class B Common Stock outstanding. The
Company believes that adoption of the repurchase program could be a viable use
of excess cash. Such purchases, if any, will occur from time to time as market
conditions warrant and as the company deems appropriate when judged against
other alternative uses of cash.
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 which 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, activewear and accessories operating
330 stores in 36 states.
The Company has made available a replay conference call covering the second
quarter by dialing 1-800-678-3458. This replay will be available for 48 hours
subsequent to the time of this release.
CONTACT: The Finish Line, Inc., Indianapolis
Steven J. Schneider, 317-899-1022, Extension 3350
