Finish Line (FINL)

General

General

General

FACE="Times New Roman" SIZE="2">Inventory Management.    The Company stresses effective replenishment and distribution to each store. The Company’s advanced information and distribution systems enable it to
track inventory in each store by stockkeeping unit (SKU) on a daily basis, giving the Company flexibility to merchandise its products effectively. Also, store associates are able to use the WAN and perpetual inventory system to locate and sell
merchandise that can then be fulfilled from another store. In addition, these systems allow the Company to respond promptly to changing customer preferences and to maintain optimal inventory levels in each store. The Company’s inventory
management system features automatic replenishment driven by point-of-sale (POS) data capture and a highly automated distribution center, which enables the Company to ship merchandise to each store every third day.

General

General

The following discussion and analysis should be read in conjunction with Management’s Discussion and Analysis of Financial Condition, including Critical Accounting Policies, included in the Company’s Annual Report on Form 10-K for the year ended March 1, 2008 (fiscal 2008). Unless otherwise noted, all amounts reflect the results of the Company’s continuing operations and therefore Paiva store information and results have been excluded from the following information.

The following table sets forth store and square feet information of the Company by brand for each of the following periods:

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General

Throughout this Annual Report on Form 10-K, the fiscal years ended March 1, 2008, March 3, 2007 and February 25, 2006 are referred to as fiscal 2008, 2007 and 2006, respectively.

The Finish Line, Inc. together with its subsidiaries (collectively the “Company”), is one of the largest mall-based specialty retailers in the United States, and operates under the Finish Line and Man Alive brand names.

Finish Line.    Finish Line is one of the largest mall-based specialty retailers of brand name athletic, lifestyle and outdoor footwear, and softgoods in the United States. As of April 18, 2008, the Company operated 700 Finish Line stores in 47 states. A Finish Line store generally carries a large selection of men’s, women’s and children’s athletic and lifestyle shoes, as well as a broad assortment of softgoods. Brand names offered by Finish Line include Nike, adidas, Puma, Heelys, New Balance, Asics, Converse, Lacoste, K-Swiss, Crocs and many others. Finish Line stores average 5,530 square feet. Finish Line’s strategy is to create an exciting and entertaining retail environment by continually updating store designs. Finish Line devotes a greater percentage of its sales area to softgoods than typical athletic footwear specialty stores. Softgoods accounted for approximately 17% of Finish Line’s net sales in fiscal 2008.

Man Alive.    Man Alive is one of the nation’s leading street fashion retailers offering men’s and women’s name brand fashions from the industry’s leading designers. As of April 18, 2008, the Company operated 94 Man Alive stores in 19 states. Man Alive attempts to distinguish itself from competitors by carrying a balance of street wear collections as well as volume key items, such as graphic t-shirts. Man Alive identifies progressive trends and brands quickly, which enables it to be faster to the marketplace than its competitors. Brand names offered by Man Alive include Coogi, Baby Phat, Rocawear, Miskeen, Apple Bottoms, Levi’s, C.sport, Miami Ink, DC and many others. Man Alive stores average 3,472 square feet. Net sales from softgoods represented approximately

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91% of Man Alive’s net sales in fiscal 2008. Man Alive was acquired by the Company on January 29, 2005 when it was a 37-store chain operating in nine states.

Paiva.    The Company operated Paiva stores, which targeted the active woman, for a portion of fiscal 2008 and 2007. On August 27, 2007, the Board of Directors of the Company approved management’s recommendation to proceed with the closure of all 15 Paiva stores as a thorough assessment and analysis revealed the concept was not demonstrating the potential necessary to deliver an acceptable long-term return on investment.

The Company’s principal executive offices are located at 3308 N. Mitthoeffer Road, Indianapolis, Indiana 46235, and its telephone number is (317) 899-1022.

General

Throughout this Annual Report on Form 10-K, the fiscal years ended March 3, 2007, February 25, 2006 and February 26, 2005 are referred to as fiscal 2007, 2006 and 2005, respectively.

The Finish Line, Inc. together with its subsidiaries (collectively the “Company”), is one of the largest mall-based specialty retailers in the United States, and operates under the Finish Line, Man Alive, and Paiva brand names.

Finish Line.    Finish Line is one of the largest mall-based specialty retailers of brand name athletic, lifestyle and outdoor footwear, and softgoods in the United States. As of April 20, 2007, the Company operated 693 Finish Line stores in 47 states. A Finish Line store generally carries a large selection of men’s, women’s and children’s athletic and lifestyle shoes, as well as a broad assortment of softgoods. Brand names offered by Finish Line include Nike, adidas, Puma, Reebok, Skechers, New Balance, K-Swiss, Timberland, Asics, Converse and many others. Finish Line attempts to distinguish itself from other athletic footwear specialty retailers through larger mall-based store formats. Finish Line stores average 5,557 square feet. Finish Line’s strategy is to create an exciting and entertaining retail environment by continually updating store designs, and to operate a larger store size than its competitors’ stores, which permits greater product selection and merchandising flexibility. Finish Line devotes a greater percentage of its sales area to softgoods than typical athletic footwear specialty stores. Softgoods accounted for approximately 19% of Finish Line’s net sales in fiscal 2007.

Man Alive.    Man Alive is one of the nation’s leading street fashion retailers offering men’s and women’s name brand fashions from the industry’s leading designers. As of April 20, 2007, the Company operated 87 Man Alive stores in 18 states. Man Alive attempts to distinguish itself from competitors by carrying more brands than other competitors as well as early identification of progressive and edgy trends in urban apparel, which enables Man Alive to be quicker to the marketplace than its competitors. Brand names offered by Man Alive include L.R.G., Miskeen, Rocawear, Enyce, Girbaud, Akademiks, Sean John, Parish, Baby Phat, Apple Bottoms, Ecko, Dickies, and many others. Man Alive stores average 3,429 square feet with the current new store format

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averaging 3,500 square feet. Net sales from softgoods represented approximately 90% of Man Alive’s net sales in fiscal 2007. Man Alive was acquired by the Company on January 29, 2005 when Man Alive was a 37-store chain operating in nine states.

Paiva.    Paiva is the Company’s new concept for the active woman, which premiered with its first store opening on April 14, 2006 in Austin, Texas. As of April 20, 2007, the Company operated 15 Paiva stores in 10 states. Paiva stores are tailored specifically for the active woman and have a one-of-a-kind atmosphere that provides style, vitality and inspiration. Paiva offers a one-stop shop where women can buy stylish performance products for running, yoga, fitness and cardio workouts, as well as her active lifestyle. Brand names offered by Paiva include Nike, adidas, Fila, Asics, Brooks, Puma, prAna, Privo, Diesel, Moving Comfort, Under Armour, The North Face and many more. Paiva also has a large private label selection. Paiva stores average 3,937 square feet. Net sales from softgoods represented approximately 75% of Paiva’s net sales in fiscal 2007.

The Company’s principal executive offices are located at 3308 N. Mitthoeffer Road, Indianapolis, Indiana 46235, and its telephone number is (317) 899-1022.

General

Throughout this Annual Report on Form 10-K, the fiscal years ended February 25, 2006, February 26, 2005 and February 28, 2004 are referred to as fiscal 2006, 2005 and 2004, respectively.

The Finish Line, Inc. together with its subsidiaries (collectively the “Company”), is one of the largest mall-based specialty retailers operating under the Finish Line, Man Alive, and Paiva brand names.

Finish Line.    Finish Line is one of the largest mall-based specialty retailers of brand name athletic, lifestyle and outdoor footwear, and softgoods in the United States. As of April 21, 2006, the Company operated 667 Finish Line stores in 48 states. A Finish Line store generally carries a large selection of men’s, women’s and children’s athletic and lifestyle shoes, as well as a broad assortment of softgoods. Brand names offered by Finish Line include Nike, adidas, Reebok, K-Swiss, New Balance, Puma, Phat Farm, Timberland, Implus, Converse, Asics and many others. Finish Line attempts to distinguish itself from other athletic footwear specialty retailers through larger mall-based store formats. Finish Line stores average 5,641 square feet. Finish Line’s strategy is to create an exciting and entertaining retail environment by continually updating store designs, and to operate a larger store size, which permits greater product selection and merchandising flexibility. Since softgoods generally carry higher gross margins than footwear, Finish Line devotes a greater percentage of its sales area to these products than typical athletic footwear specialty stores. Softgoods accounted for approximately 20% of Finish Line’s net sales in fiscal 2006.

Man Alive.    Man Alive is one of the nation’s leading hip-hop fashion retailers offering men’s and ladies’ name brand fashions from the industry’s leading designers. As of April 21, 2006, the Company operated 58 Man Alive stores in 14 states. Man Alive attempts to distinguish itself from competitors by carrying more brands than other competitors as well as early identification of progressive and edgy trends in urban apparel, which enables Man Alive to be quicker to the marketplace than its competitors. Man Alive stores average 3,110 square feet with the current store format averaging 3,500 square feet. Net sales from softgoods represented approximately 92% of Man Alive’s net sales in fiscal 2006. Man Alive was acquired by the Company on January 29, 2005 when Man Alive was a 37-store chain operating in nine states.

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Paiva.    Paiva is the Company’s new concept for the active woman, which premiered with its first store opening on April 14, 2006 in Austin, Texas. As of April 21, 2006, the Company operated one Paiva store. The name Paiva is Scandinavian in origin, referring to a sun deity, or meaning “of the light”. Light is a source of energy and strength, as fitness is a source of energy and strength for active women. Paiva stores are tailored specifically for the active woman and have a one-of-a-kind atmosphere that provides style, vitality and inspiration. Brand names offered by Paiva will include adidas by Stella McCartney, Nike, adidas, Fila, Mari Dade, Asics, Brooks, Nuala, Prana, Biella, Ellesse, Marika, OMgirl, Three Dots, Moving Comfort, Speedo, Diesel, Under Armour, and many more. Paiva also has a large private label selection. Paiva store formats will average 4,000 square feet. The expected mix of net sales at Paiva stores is 70% softgoods and 30% footwear.

The Company’s principal executive offices are located at 3308 N. Mitthoeffer Road, Indianapolis, Indiana 46235, and its telephone number is (317) 899-1022.

General

The following discussion and analysis should be read in conjunction with Management’s Discussion and Analysis of Financial Condition, including Critical Accounting Policies, included in the Company’s Annual Report on Form 10-K for the year ended February 26, 2005 (fiscal 2005). The Company’s consolidated results of operations include those of The Finish Line Man Alive, Inc. (Man Alive), a wholly-owned subsidiary of The Finish Line, Inc., for the periods presented since the date of its acquisition, January 29, 2005. Man Alive is not, however, included in any comparable store information. Comparable store information includes Internet sales.

General

The following discussion and analysis should be read in conjunction with Management’s Discussion and Analysis of Financial Condition, including Critical Accounting Policies, included in the Company’s Annual Report on Form 10-K for the year ended February 26, 2005 (fiscal 2005). The Company’s consolidated results of operations include those of The Finish Line Man Alive, Inc. (Man Alive), a wholly-owned subsidiary, for the periods presented since the acquisition date of January 29, 2005; however, Man Alive is not included in any comparable store information.

General

The following discussion and analysis should be read in conjunction with Management’s Discussion and Analysis of Financial Condition, including Critical Accounting Policies, included in the Company’s Annual Report on Form 10-K for the year ended February 26, 2005 (fiscal 2005). The Company’s consolidated results of operations include those of Man Alive for the period presented since the acquisition date of January 29, 2005, however Man Alive is not included in any comparable store information.

General

Throughout this Annual Report on Form 10-K, the fiscal years ended February 26, 2005, February 28, 2004 and March 1, 2003 are referred to as fiscal 2005, 2004 and 2003, respectively.

The Finish Line, Inc. (“Finish Line”) together with its wholly-owned subsidiaries The Finish Line Man Alive, Inc. (“Man Alive”), The Finish Line USA, Inc., The Finish Line Distribution, Inc., Spike’s Holding LLC, and Finish Line Transportation Company, Inc., (collectively the “Company”) is one of the largest mall-based specialty retailers of brand name athletic, outdoor and lifestyle footwear, activewear and accessories in the United States. As of April 15, 2005, the Company operated 609 Finish Line stores in 46 states and 37 Man Alive stores in 9 states. A Finish Line store generally carries a large selection of men’s, women’s and children’s athletic and lifestyle shoes, as well as a broad assortment of activewear and accessories. Brand names offered by the Company include Nike, adidas, Reebok, K-Swiss, New Balance, Phat Farm, Timberland, Brooks, Saucony, Asics and many others. A Man Alive store is a hip-hop fashion retailer offering men’s and ladies’ name brand fashions from the industry’s leading designers.

The Company attempts to distinguish itself from other athletic footwear specialty retailers through larger mall-based store formats. Finish Line stores average 5,710 square feet and Man Alive stores average 2,831 square feet. The Finish Line’s stores opened during fiscal 2005 averaged approximately 4,857 square feet. The Company’s strategy is to create an exciting and entertaining retail environment by continually updating store designs, and to operate a larger store size, which permits greater product selection and merchandising flexibility. Since activewear and accessories generally carry higher gross margins than footwear, Finish Line devotes a greater percentage of its sales area to these products than typical athletic footwear specialty stores. Activewear and accessories accounted for approximately 21% of the Company’s net sales in fiscal 2005.

On July 29, 2004, The Finish Line, Inc., a Delaware corporation (the “Delaware Company”) merged (the “Reincorporation Merger”) with and into its newly-formed, wholly-owned subsidiary, The Finish Line Indiana Corp., an Indiana corporation (referred to throughout this report as the “Company”). The Company survived the

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Reincorporation Merger as an Indiana corporation and became the successor corporation to the Delaware Company under the Securities Exchange Act of 1934, as amended, with respect to the Delaware Company’s Class A stock, and under the Securities Act of 1933, as amended (“Securities Act”) with respect to the Delaware Company’s outstanding Securities Act registration statements. At the effective time of the Reincorporation Merger, the Company also changed its name to “The Finish Line, Inc.” The principal purpose of the Reincorporation Merger was to change the state of incorporation of the Delaware Company from Delaware to Indiana.

The Company’s principal executive offices are located at 3308 N. Mitthoeffer Road, Indianapolis, Indiana 46235, and its telephone number is (317) 899-1022.

General

The following discussion and analysis should be read in conjunction with Management’s Discussion and Analysis of Financial Condition, including Critical Accounting Policies, included in the Company’s Annual Report on Form 10-K for the year ended February 28, 2004.

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Except for the historical information contained herein, the matters discussed in this filing are forward looking statements that involve risks and uncertainties that could cause actual results to differ materially from those expressed in any of the forward looking statements. Such risks and uncertainties 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 words or phrases “anticipates”, “expects”, “will continue”, “believes”, “estimates”, “projects”, or similar expressions are intended to identify “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.