On Thursday, March 29, after the market close, footwear retailer Finish Line (NASDAQ:FINL) released fourth-quarter and year-end results for the period ended March 3. Here are the quick and dirty details for the quarter.

  • Total sales advanced 7.5%, but only 1.4% when subtracting an extra week in the current quarter versus last year. Same-store sales fell 5.4%.
  • Diluted earnings fell 24.1%, as the company took a $0.10 charge related to 19 underperforming stores. Weakness was seen in the non-premium performance, women's, and soft good product categories.
  • Management expects "the short-term environment for specialty athletic retailing to be challenging," but remains "confident in the long-term growth of the business." Going forward, Finish Line is looking to focus more on fashion and premium brands to differentiate its stores. As such, it recently lured a men's shoe VP away from high-end retailer Nordstrom (NYSE:JWN). Finish Line also announced an imminent press release regarding a product-development initiative with Nike (NYSE:NKE).
  • Finish Line carries a lowly one-star rating in the Motley Fool CAPS intelligence database. Rival Foot Locker (NYSE:FL) has a three-star rating, while Skechers (NYSE:SKX) and Nike both boast four-star ratings. Feel free to head to CAPS and offer your own opinion on these and other companies.

(Figures in thousands, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$429,019

$399,225

7.5%

Net Profit

$21,067

$28,060

(24.9%)

EPS

$0.44

$0.58

(24.1%)

Diluted Shares

47,557

48,704

(2.4%)

Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

31.57%

33.1%

(1.496)

Operating Margin

7.9%

11.1%

6.77(3.2)

Net Margin

4.9%

7.0%

(2.1)

*Expressed in percentage points

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$62,864

$96,563

(34.9%)

Inventory

$287,300

$268,590

7.0%

Liabilities

Q4 2006

Q4 2005

Change

Current Liabilities

$142,886

$142,415

0.3%

Deferred Credits From Landlords

$64,472

$56,859

13.4%

The balance sheet reflects the company's health.

Cash Flow Highlights

Fools will have to wait until Finish Line files its 10-K with the Securities and Exchange Commission for juicy cash flow details.

Free cash flow is a Fool's best friend.

Related Foolishness:

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Fool contributor Ryan Fuhrmann is long shares of Nike but has no financial interest in any other company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.