Weekly News...3/25/05 MARCH 25, 2005 -- Retail Census Shows Consolidation Of Athletic Shoe Specialty Business Sales at the four largest specialty athletic footwear chains grew to 70.5% of sales in this channel of distribution during the five-year period 1997-2002, according to an NSGA analysis of recently released US Census of Retail data. In the previous five-year period, the four largest chains represented 61.7% of sales. In the previous five-year period, the four largest chains represented 61.7% of sales. Concentration of sales in the four largest specialty athletic footwear chains grew less rapidly between 1997 and 2002 (12.3%) than in the previous five-year period (41.8%). "The four largest specialty athletic footwear chains operated 63% of the stores " said NSGA VP/information & research Tom Doyle. "In the previous census, they had operated 54% of the stores, 2,875 out of 5,277 stores." Concentration of sales also grew in the specialty sports channel, but not close to levels seen in the specialty athletic footwear channel. Sales of the four largest specialty retailers grew to 12% of sales in this channel of distribution during the five-year period 1997-2002. In the previous five-year period, the four largest specialty retailers represented 8.4% of sales. "For the four largest specialty athletic footwear firms, sales per store edged up to $1.32 million per store, up 4% from the $1.27 million five years earlier," Doyle said. According to the Census of Retail data, sales in the specialty athletic footwear channel reached $7.27 billion in 2002, up 22.7% from the $5.92 billion in 1997. Sales growth was stronger in the full-line store segment, up 39% to $12.98 billion in 2002 versus $9.31 billion in 1997. Sales in specialty sports shops rose 12% to $12.05 billion versus $10.73 billion in 1997. The US Bureau of the Census conducts the Census of Retail Trade once every five years. Data already released and a schedule of when additional data will be released may be found at www.census.gov/econ/census02/. The Finish Line Completes FY05 Report Earlier this month, The Finish Line was not able to report its 4Q and FY05 earnings due to the new SEC opinion on lease accounting. It had to restate earnings for the prior two years and complete the numbers for FY05. 4Q net sales increased 18% to $361.4 million. Comp-store net sales increased 8% on top of a 19% increase reported in FQ04. Net income for 4Q was $28.2 million or 57¢ per diluted share vs $21.1 million or 43¢ per diluted share on a restated basis for 4Q04, an increase of 33% in diluted income per share. The 4Q05 EPS was a penny above estimates. FY05 net sales increased 18% to $1.167 compared to $985.9 million in FY04. Comp-store net sales increased 9% on top of a 20% increase in FY04. Reported net income for FY05 was $61.3 million or $1.24 per diluted share versus $47.3 million or 98¢ per diluted share on a restated basis for FY04. Included in FY04 is the benefit from the gain on the tornado insurance settlement of 1¢ per diluted share. Excluding the insurance settlement, FY04 adjusted net income per diluted share would have been 97¢. As a result, FY05 EPS of $1.24 increased 28%.