FINANCE

Finish Line records 20% leap in Q1 profit

BY Staff Writer

Indianapolis — Finish Line reported Thursday that earnings for the quarter ended May 28 rose 20% to $16.4 million, compared with $13.6 million in the year-ago period.

Revenue, despite a 6% rise to $299 million, missed Wall Street expectations of $301.4 million.

Same-store sales increased 6.1% for the quarter.

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FINANCE

Sears to spin off 89-store Orchard Supply Hardware chain

BY Katherine Boccaccio

Hoffman Estates, Ill. — Sears Holdings Corp. disclosed in a Thursday filing that it plans to spin off its Orchard Supply Hardware Stores Corp. business as a separate, publicly traded company.

In a filing with the Securities and Exchange Commission, Sears said it believes that the 89-store chain will generate more shareholder value on its own. Shares in Orchard Supply Hardware will be distributed equitably among shareholders of Sears Holdings, which owns 80% of Orchard Supply, and Ares Management LLC, which owns the remaining 20%. As a result, ESL Investments, the hedge fund controlled by Edward S. Lampert, which controls roughly 61% of Sears Holdings, will become the new company’s largest owner.

Sears has valued Orchard at $82 million. No target price for the IPO has yet been set and no spin-off date has been announced. Orchard generated a profit of $8.7 million and $661 million in revenue in fiscal 2010, but its revenue has dropped for several consecutive years and its profit picture has been erratic.

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News

Finish Line comp continues to thrive

BY CSA STAFF

INDIANAPOLIS— The Finish Line reported that net sales for the first quarter increased 6% to $299.5 million in the first quarter compared with $282.4 million a year ago. Comparable-store sales increased 6.5% in the first quarter on top of an increase of 10.9% for the same period a year ago.

Finish Line reported first quarter income from continuing operations of $16.4 million, or 30 cents per diluted share, compared with income from continuing operations of $13.7 million, or 25 cents per diluted share, a year ago, representing a 20% earnings per share increase.

“Delivering growth on top of a strong performance a year ago was the story of the first quarter,” said Finish Line chairman and CEO Glenn Lyon.

Finish Line operates 656 stores in malls across the United States.

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