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« : 11 Haziran 2015, 09:49:17 »
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Camilo R. Lyon   Canaccord Genuity, Research DivisionGood morning, i'm michael duivis Lisa, i has to be your conference operator today. At this time, I have to welcome everyone for the Finish Line Second Quarter Fiscal Year 2014 Earnings Conference Call. [ Instructions]

Thanks a lot. Mr. Ed Wilhelm, you could possibly start the conference.

Good morning, everyone, and thank you for joining us. About the call beside me today is our Chairman and CEO, Glenn Lyon. Furthermore, Sam Sato Nike Air Max 90 has been us to the question and answer area of our call.

Before I recieve started, I want to remind you that call might include forward looking statements involving risks, management assumptions and uncertainties that may cause actual leads to differ materially in the statements expressed or implied. Such risks and uncertainties include, but aren't restricted to, product demand and market acceptance risks, the end results of monetary conditions, the end results of competitive products and pricing, the production of merchandise, management of growth along with other risks detailed within our news release and SEC filings. The forward looking statements included in this call are manufactured only as of this date with this report and also the company undertakes no obligation to update these forward looking statements to reflect subsequent events or circumstances.

Now Nike Air Max 95 I'll turn the discussion over to Glenn.

Thanks, Ed, and welcome to everyone joining us today. Q2 would be a well executed, successful quarter in what is turning out to be a frightening retail environment. We delivered a 1% comp improvement on surface of a 12% obtain a year ago, driven by the strong finish as August comparable sales increased 4%. Importantly, expenses were well controlled leading to good operating expense leverage and healthy flow to tha harsh truth. This helped to offset some pressures in gross margin from a softer than expected top dollar selling.

For that second quarter, EPS was $0.54, a growth of 10% over this past year. Even though this was ahead of external expectations, it was in keeping with our plan. We feel it's prudent to maintain our initial fiscal '14 guidance in the uncertain outlook for discretionary consumer spending. Additionally, there exists a distinction between our fourth quarter SG projection and the Street's, which Ed goes through later within the call.

Considering our comp performance in depth, stores comped flat following an 11% surge in last year's Q2. Digital sales increased 6% along with a 30% increase this past year. Digital traffic is still robust, up 33% in the second quarter, fueled in part by strong gains in mobile traffic. Were maintaining a well balanced method of driving upper and lower line gains within our digital business, and we're glad to have achieved our operating income plan for the other quarter.

By category, footwear sales on the comparable basis increased 2%. Looking first at running, there is a couple of key takeaways through the quarter. Q2 comps were down low single digits pas cher Nike air max similar to the first quarter. However, Q2 Nike Air Max TN results were together with a tougher comparison in comparison to the first quarter, and trends did improve right at the end in the second quarter with August comps flat for your month. This was fueled by a lot more exciting awesome launches causing us to be more optimistic.

With regards to product performance, we continue to see success with Flyknit Lunar, as the a reaction to Flyknit Free, that has been launched in Q2, seemed to be positive. We remain enthusiastic about the opportunity of this new service from Nike and we Nike free look forward to the development of new colors, and also the launch of a third platform, Flyknit Max, later in 2010. Simultaneously multiple styles from both Air Max and Nike Free always generate strong sales gains.

It is clear that new innovation is generating excitement in the marketplace and driving improved results in our business. SpringBlade from adidas, which launched at the begining of August, is selling extremely well at the $180 cost. Other big wins within the quarter include our exclusive with Under Armour Spine and new fashion technology products from both ASICS and Brooks.

Basketball had been again a solid category with comps up low teens. Effects were driven primarily by retro and performance products from Brand Jordan and Nike signature series featuring shoes from LeBron and Kevin Durant. Concurrently, while a lesser percent individuals basketball business, Reebok and adidas Retro products did very well. About the strength of basketball, our men's business comped up low single digits, while women's was down mid singles, and children posted another strong quarter with comps up mid single digits.

Looking at softgoods, trends did improve in the first quarter, but comps down high single digits, the course remains a way for us. Once we look for the 2nd half, we will target the following: Our licensed and branded fleece programs; our youngsters branded apparel to enhance the potency of kids footwear; and our expanded backpack assortment.

Recent results indicate that our core customers are heading in the right direction. With an improved product pipeline, our outlook for running is more positive of computer was A few months ago. That said, our optimism for that back half the season will be somewhat tempered from the still challenging retail environment. We're devoted to maximizing our near term opportunity and executing against our long-term vision to the company. Developing industry leading omnichannel capabilities can be an absolute necessity given our core customer, and also the evolving retail landscape. Our ongoing transformation right into a leading multidivisional omnichannel business will likely help maximize returns and profitability over time.
 
 
 
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