UPDATE 2-Man Alive business drags Finish Line to Q1 loss

* Q1 EPS -0.1/shr, in line with Street views

* Q1 revenue down 7 pct to $267.2 mln

* Shares down more than 7 pct in after-mkt trade (Adds CFO and analyst comments, updates share movement)

By Nivedita Bhattacharjee & Alexandria Sage

BANGALORE/SAN FRANCISCO, June 25 (Reuters) - Finish Line Inc (FINL.O) posted a quarterly loss on Thursday as falling sales, primarily at its Man Alive chain, hurt performance.

"The core Finish Line business was profitable," Chief Financial Officer Ed Wilhelm said.

"It was the Man Alive business that lost $3.9 million that puts us in the loss position."

On June 22, the retailer of athletic shoes and apparel said it would exit its streetwear-inspired Man Alive segment to focus on its namesake chain.

Analyst Sam Poser of Sterne, Agee & Leach said the sell-off should add at least 15 cents to the company's fiscal 2010 results.

Shares of the company were down 7.5 percent at $7.10 in trading after the bell. They had closed at $7.68 Thursday on Nasdaq.

For the first quarter, the Indianapolis-based company posted a net loss of $608,000, or 1 cent per share, compared with a profit of $868,000, or 2 cents per share, a year earlier.

Revenue fell 7 percent to $267.2 million in the quarter, with a 5.1 percent fall in sales at Finish Line and a 45.5 percent drop at Man Alive.

Analysts were expecting a loss of 1 cent a share on revenue of about $273.1 million, according to Reuters Estimates.

CFO Wilhelm said that traffic continued to be down at its stores as shoppers continue to shun malls.

Comparable store sales for Finish Line fell 3.9 percent, while Man Alive plunged 39.1.

"We're a small player in the mall, we're very reliant on the anchors bringing traffic into the mall." the CFO said, adding that though malls have gotten more promotional, it still hasn't turned things positive. (Editing by Anil D'Silva)