The Finish Line, Inc. (NASDAQ:FINL) reported results for the second quarter fiscal 2012, representing the 13-week period ended August 27, 2011.

Net sales increased 10.1% to $331.5 million compared to $301.1 million a year ago. Comparable store sales increased 11.0% on top of an increase of 2.0% for the same period a year ago.

Finish Line reported second quarter net income of $20.9 million, or $0.39 per diluted share, compared to net income of $16.8 million, or $0.31 per diluted share, a year ago. This represents an earnings per share increase of 25.8%. Operating margin increased 130 basis points to 10.2% of sales this year from 8.9% of sales a year ago.

Merchandise inventories increased 5.9% to $229.8 million at the end of the quarter compared to $217.0 million a year ago.

At quarter-end, the company had no interest-bearing debt and $289.6 million in cash and cash equivalents, up from $253.7 million at the end of the second quarter a year ago. The company repurchased 2.1 million shares of its outstanding common stock in the second quarter, totaling $44.8 million. On a year-to-date basis, 2.6 million shares have been repurchased, totaling $54.5 million. Finish Line has 4.1 million shares remaining on the 5-million-share repurchase program currently in place.

For the 26 weeks ended August 27, 2011, net sales increased 8.1% to $631.0 million compared to $583.5 million for the same period a year ago. Year-to-date comparable store sales increased 8.8% on top of a 6.1% increase last year.

Finish Line reported net income of $37.3 million, or $0.69 per diluted share, which is 23.2% higher than the same period a year ago, when net income was $30.5 million, or $0.56 per diluted share.

Finish Line is a premium retailer of athletic shoes, apparel and accessories. Headquartered in Indianapolis, Finish Line operates 646 stores in malls across the United States. More than 11,000 Finish Line sneakerologists help customers each day connect with their sport, their life and their style. Online shopping is available at http://www.finishline.com/ and mobile shopping is available at m.finishline.com. Follow Finish Line on Twitter at Twitter.com/FinishLine and "like" Finish Line on Facebook at facebook.com/FinishLineUSA.

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