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Start-Up Costs
6 Months Ended
Aug. 30, 2014
Extraordinary and Unusual Items [Abstract]  
Start-Up Costs
Start-Up Costs
The Company entered into a department license agreement and an on-line shop license agreement (the “Agreements”) with Macy’s, Inc. (“Macy’s”) whereby the Company is the exclusive provider of men’s, women’s and kids’ athletic shoes (“Athletic Shoes”) within Macy’s stores and macys.com. The Company merchandises and fulfills inventory at all of Macy’s locations, and will perform in-store build outs and staffing at up to approximately 400 of Macy’s locations. The Company incurred start-up costs to accommodate a conversion of Macy’s Athletic Shoes inventory to Finish Line assortments. The Company took full control of Macy’s Athletic Shoes inventory at Macy’s department store locations as of April 14, 2013 and macys.com as of May 14, 2013. As a part of the conversion, the Company agreed to purchase certain of Macy’s Athletic Shoes at Macy’s original cost.
The charges from start-up costs related to the Agreements with Macy’s included the following: freight and handling of inventory from Macy’s to the Company; leased warehouse space at a third party for sorting; and inventory reserves established for inventory purchased from Macy’s to record at the lower of cost or market.
For the twenty-six weeks ended August 31, 2013, the Company incurred $5.8 million in start-up costs in cost of sales and $2.2 million in selling, general and administrative expenses within the consolidated statements of income for a combined $8.0 million. No start-up costs were incurred during the twenty-six weeks ended August 30, 2014.