Joaos answer can even be simplified. In the footer, do not set the visible-property of your default item to false, but use the following expression:
<FooterTemplate>
<asp:Label ID="defaultItem" runat="server"
Visible="<%# YourRepeater.Items.Count == 0 %>" Text="No items found" />
</FooterTemplate>
This way, you can save the code behind.