INDIANAPOLIS (AP) ¿ The Finish Line Inc., a seller of athletic shoes and clothes, rose to a profit in the third quarter from a year-ago loss, helped by a big one-time tax gain.

Finish Line also controlled its expenses, managed inventory better and improved store operations as it navigated a cautious consumer spending environment, CEO Glenn Lyon said in a statement.

In the quarter that ended Nov. 28, Finish Line had a profit of $6.6 million, or 12 cents per share, compared with a loss of $8.8 million, or 16 cents per share, a year earlier. Its big one-time tax gain of $6.5 million was related to the termination of its plans to buy Genesco Inc., a shoe and hat retailer with brands such as Journeys, Hat World, Lids and others. Finish Line had proposed the $1.5 billion deal in June 2007 but it later fell apart.

Excluding items, the company broke even, beating analysts' average estimate for a loss of 9 cents per share. Revenue slipped 0.2 percent to $240.1 million from $240.6 million, also topping the $234 million expected by analysts polled by Thomson Reuters.

Sales at stores open at least a year rose 1.7 percent during the quarter, Finish Line said. Sales at stores open at least a year is a key measure of retailer performance because it is not skewed by new store openings and closings.

Shares of Finish Line, based in Indianapolis, rose 75 cents, or 7.5 percent, to $10.75 in after-hours trading Tuesday after the quarterly results were released. The stock closed the regular session up 17 cents at $10.
Copyright 2009 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

If you liked this article you might like

What's Behind the Surge in Energy Stocks

What's Behind the Surge in Energy Stocks

Hillary Clinton Says Prosecuting Individuals is Key to Wall Street Reform

Hillary Clinton Says Prosecuting Individuals is Key to Wall Street Reform