The following is excerpted from the question-and-answer section of the transcript.

Question: Robbie Ohmes - BAS-ML - Analyst: Thanks, good morning guys.

Answer By: Glenn Lyon - Finish Line - CEO

Question: Robbie Ohmes - BAS-ML - Analyst: A couple of quick questions. First, Glenn, I was hoping, I'm actually surprised the ASPs were still up just given the Labor Day shift can lead back-to-school work for you guys. Can you comment on how you feel about ASPs heading into the back half of this year and then I think you guys might be doing some work on Spring 2010. Do you see a change in the way your business will drive ASP versus unit volumes you're doing, those plans? And then also if you could comment on it, and I might have missed it, the plus 7% comps you're doing, obviously the Labor Day shift probably helped with that and are you still benefiting from a late back-to-school now or have you seen sort of following this past weekend here, has the business trends really dropped back off maybe not as negative as they've been but maybe not as strong as the plus 7? Thanks.

Answer By: Glenn Lyon - Finish Line - CEO

Answer By: Ed Wilhelm - Finish Line - CFO

Question: Robbie Ohmes - BAS-ML - Analyst: Great. Thanks so much for the info guys.

Answer By: Ed Wilhelm - Finish Line - CFO

Question: Tom Shaw - Stifel Nicolaus - Analyst: Hi,guys.Nicequarterinatoughenvironment.IguessEd,firstquestion,maybeprovideanyextracolorontheleasenegotiations. In the past you talked about 35% basis up for some form of renewal in the next 12 months maybe where that stands, any color on sort of average savings or even the kind of posturing of the landlords as the economy shows signs of recovery.

Answer By: Steve Schneider - Finish Line - President, COO

Question: Tom Shaw - Stifel Nicolaus - Analyst: Got you. And kind of a follow-up to that, you breaking up the store closure cost is something a little different and obviously, the description around kind of a higher store closures than I think you previously had been looking for. Did anything change there that kind of changed that stance from trying to keep these stores open and having a lower kind of rent base versus higher closure rate?

Answer By: Steve Schneider - Finish Line - President, COO

Answer By: Ed Wilhelm - Finish Line - CFO

Answer By: Steve Schneider - Finish Line - President, COO

Question: Tom Shaw - Stifel Nicolaus - Analyst: Okay, thanks. Best of luck in the back half.

Answer By: Steve Schneider - Finish Line - President, COO

Question: Jeff Van Sinderen - B. Riley - Analyst: Good morning. So it seems like full price selling improved if I heard you guys correctly, just wondering any thoughts on promotional cadence expected for Q3? It sounds like you guys have stayed away from doing all store proms and so forth.

Answer By: Glenn Lyon - Finish Line - CEO

Question: Jeff Van Sinderen - B. Riley - Analyst: That's good to hear, and then in terms of inventory being down as much as it is, how should we think about that in the context of same-store sales, average price point, turns, and I guess flexibility of your vendors to ship more product at launch?

Answer By: Glenn Lyon - Finish Line - CEO

Question: Jeff Van Sinderen - B. Riley - Analyst: Okay, and then finally, can you remind us of the comp anniversary that you're up against in October and November?

Answer By: Glenn Lyon - Finish Line - CEO

Answer By: Ed Wilhelm - Finish Line - CFO

Question: Jeff Van Sinderen - B. Riley - Analyst: Okay, so you would expect that with comps getting easier even, if once we get past this sort of late back-to-school that your trend would be better than it was in Q2?

Answer By: Ed Wilhelm - Finish Line - CFO

Question: Jeff Van Sinderen - B. Riley - Analyst: Okay, good to hear. Thanks very much and good luck this quarter.

Question: Heather Boksen - Sidoi & Co. - Analyst: I was just wondering, can you break out, just curious, what percentage of cost of goods sold is the days of occupancy cost?

Answer By: Glenn Lyon - Finish Line - CEO

Question: Heather Boksen - Sidoi & Co. - Analyst: Ballpark?

Answer By: Glenn Lyon - Finish Line - CEO

Question: Heather Boksen - Sidoi & Co. - Analyst: Okay, I guess also what kind of rent declines are you seeing when you do renew a lease?

Answer By: Ed Wilhelm - Finish Line - CFO

Question: Heather Boksen - Sidoi & Co. - Analyst: All right, and you raised the store closure channel for this year. Just curious as we look ahead for 2011, are you happy with how much you're closing this year, are you going to see more again in 2011 or I know it's still a ways out but just maybe what your thoughts are as far as store base going forward?

Answer By: Glenn Lyon - Finish Line - CEO

Question: Heather Boksen - Sidoi & Co. - Analyst: About what percentage of the chain right now is unprofitable?

Answer By: Glenn Lyon - Finish Line - CEO

Question: Heather Boksen - Sidoi & Co. - Analyst: That's what I got. Thanks guys.

Answer By: Glenn Lyon - Finish Line - CEO

Answer By: Ed Wilhelm - Finish Line - CFO

Answer By: Steve Schneider - Finish Line - President, COO

Question: Chris Svezia - Susquehanna Financial - Analyst: Good morning, gentlemen. A couple of questions. I guess first on apparel, the improvement -- over the many years we've seen the apparel just kind of be contracted, starting to see some general improvement in trends, I guess more specifically, how much is -- I mean, North Face seems to be a piece of that in terms of what you got in your store. You didn't talk about the technical end of the apparel components but you did mention Jordan. Just your thoughts about what's happening there, what we can expect and any color about how many stores you have in North Face in at this point?

Answer By: Sam Sato - Finish Line - Chief Merchandising Officer

Question: Chris Svezia - Susquehanna Financial - Analyst: Good, how are you?

Answer By: Sam Sato - Finish Line - Chief Merchandising Officer

Answer By: Glenn Lyon - Finish Line - CEO

Question: Chris Svezia - Susquehanna Financial - Analyst: Okay, I guess one follow-up on the apparel side. Does kind of Nike dry fit -- you mentioned Jordan, but something like Nike dry fit or the Under Armour compression does that continue to play out a part to that apparel component as you continue to make adjustments there?

Answer By: Glenn Lyon - Finish Line - CEO

Question: Chris Svezia - Susquehanna Financial - Analyst: Okay, thank you and just to move to the footwear side for a moment, I guess one question here, maybe the percentage of exclusives that you are getting at the Finish Line, maybe year-over-year as you look at the second half, is there any change to that number one? And number two, fitness has become an important category it seems as if I think EVTones, Reebok plays a piece to that, Skechers Shape-ups, just your thought on that category, how important it might be to you in the second half, just thinking about product drivers in your business?

Answer By: Glenn Lyon - Finish Line - CEO

Question: Chris Svezia - Susquehanna Financial - Analyst: Thank you and the last question I have is just on the September trends being up 7% and the stores I've been to, it seems like you guys are running your clearance event and I'm just curious, can you just talk about ASP trends, or footwear apparel you've got into that September period, how they've unfolded, if you could?

Answer By: Glenn Lyon - Finish Line - CEO

Question: Chris Svezia - Susquehanna Financial - Analyst: Okay, thank you very much.

Answer By: Ed Wilhelm - Finish Line - CFO

Question: Chris Svezia - Susquehanna Financial - Analyst: Thank you very much.

Question: Bernie Sosnick - Gilford Securities - Analyst: Good morning. With respect to seasonality, normally, September, October, November, especially October and November are slack months in the athletic footwear business post back-to-school. Could you give us a little bit of an idea of 1) how September normally compares with August if you use August as a base of 100. Is it a lower month, how much lower, and where were sales core on a base of 100 this year for September?

Answer By: Glenn Lyon - Finish Line - CEO

Answer By: Ed Wilhelm - Finish Line - CFO

Question: Bernie Sosnick - Gilford Securities - Analyst: Okay, in any event, the quarter got off to a good start but October-November are usually slack periods, and if things are promotional right now, judging from the behavior of competitors in the mall in the past, what might we expect during this slack period?

Answer By: Glenn Lyon - Finish Line - CEO

Question: Bernie Sosnick - Gilford Securities - Analyst: Okay, I just simply want to get ready for the fourth quarter actually, and so much of what you're expecting for the fourth quarter has already just been built in by the peak back-to-school business and what you're seeing then, so we could assume that you're anticipatingbetterapparelperformanceandyou'veidentifiedkeyitemsfortheholidayseasonwhereyoucouldbuildinventories.

Answer By: Glenn Lyon - Finish Line - CEO

Question: Bernie Sosnick - Gilford Securities - Analyst: Okay, thanks a lot.

Question: Camilo Lyon - Wedbush Securities - Analyst: Thank you, good morning. So I'd like to ask a question regarding the total occupancy and see if I can approach it a different way. So in the first quarter total occupancy was down 4.5% year-over-year, this past quarter it was down 7.5%. Can you discuss a little bit about what drove the incremental improvement there quarter to quarter and how we should think about that run rate of savings going forward?

Answer By: Ed Wilhelm - Finish Line - CFO

Question: Camilo Lyon - Wedbush Securities - Analyst: So would you say that the 4.5% reduction is probably the safer assumption to make going forward?

Answer By: Ed Wilhelm - Finish Line - CFO

Question: Camilo Lyon - Wedbush Securities - Analyst: And then similarly on the rate of SG&A decline, how should we think about that as there was a pretty significant improvement quarter to quarter Q1 to Q2.

Answer By: Ed Wilhelm - Finish Line - CFO

Question: Camilo Lyon - Wedbush Securities - Analyst: That's very helpful. And I guess the last question I have is as you continue to build up a healthy cash balance, at what point do you become comfortable redeploying that cash? And how would you do it?

Answer By: Ed Wilhelm - Finish Line - CFO

Question: Camilo Lyon - Wedbush Securities - Analyst: Great. Best of luck. Thank you.

Answer By: Ed Wilhelm - Finish Line - CFO

Question: Chris Susa - - Analyst: A question, as it pertains to real estate and your average store size, being roughly call it 5500 or so square feet at this point for the chain, and as you think about reductions in inventory that have certainly taken place over the past two years and you think about store productivity, I think at 1.360, 1.370 a couple years ago, just kind of walk us through when you talk about real estate and you're having these negotiations are you're thinking about contracting the size of the box just given what's happening with inventory and productivity or is productivity just a function of better product at better ASPs and hopefully improvement in traffic as we move forward?

Answer By: Glenn Lyon - Finish Line - CEO

Question: Chris Susa - - Analyst: Okay, thank you.

Answer By: Glenn Lyon - Finish Line - CEO