50-OFF Stores, Inc. reports fiscal 1995 fourth quarter and year-end results.

SAN ANTONIO--(BUSINESS WIRE)--March 15, 1995--San Antonio based off-price retailer 50-OFF Stores, Inc. reported today its results for the 14 and 53 weeks ended Feb. 3, 1995.(a)

As previously reported, the results for the 53-week period ended Feb. 3, 1995 include pre-tax charges totaling $6.1 million for costs related to the closing of seven stores in fiscal 1995 and 12 stores to be closed in fiscal 1996, of which $5.1 million was charged in the fourth quarter, including $4.9 million for the 12 stores to be closed in fiscal 1996. The charges include $836,000 for inventory valuation adjustments related to the 10 stores the company is closing during the first quarter of fiscal 1996. The company currently operates 109 stores in 14 states in the southern and southwestern United States and expects to be operating 102 stores in 11 states at the end of fiscal 1996.

For the 14 week period ended Feb. 3, 1995, net sales decreased 4.5 percent to $65,311,000 from $68,398,000 for last year's comparable period. The company reported a net loss of $(6,186,000), or $(.56) per common share on a fully diluted basis, compared to a net loss of $(968,000), or $(.09) per common share, for the prior year period.

The Mexican Government devalued the peso just prior to Christmas, and the 10 company border stores most dependent upon Mexican nationals for their sales experienced a significant drop in sales year to year for the last seven weeks of fiscal 1995. Unseasonably warm weather in the company's market areas during the fourth quarter of fiscal 1995 also negatively affected sales and contributed to a 4.8 percent decrease in net sales for comparable stores for the quarter. Management believes these factors, combined with the company's operation of fewer stores during the most recent quarter, were also primarily responsible for the decrease in net sales.

For the 53-week period ended Feb. 3, 1995, net sales increased 1.0 percent to $201,543,000 from $199,589,000 for last year's comparable period. Net sales for comparable stores increased 2.6 percent for the year. The company reported a net loss of $(8,024,000) or $(.76) per common share on a fully diluted basis, compared to a net loss of $(8,916,000), or $(.86) per common share, for the prior year period.

The results for the fiscal 1994 include a $3.4 million ($.33 per common share) after-tax charge to earnings for the cumulative effect of the company's change in its accounting policy for pre-opening store costs.

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(a) The company's fourth quarter and 1995 fiscal year were 14 and 53 week periods, respectively, ended Feb. 3, 1995. The company's fourth quarter and 1994 fiscal year were 13 and 52 week periods, respectively, ended Jan. 28, 1994.

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                           50-OFF STORES, INC.
                    SELECTED STATEMENTS OF OPERATIONS
                    ---------------------------------
                  (In Thousands, Except Per Share Data)

                       14 WEEKS     13 WEEKS    53 WEEKS     52 WEEKS
                         ENDED        ENDED       ENDED        ENDED
                         FEB. 3,     JAN. 28,     FEB.3,     JAN. 28,
                          1995         1994        1995        1994
                        -------      -------      -------     -------
   Statements Of Operations
   ------------------------
   Net sales              $ 65,311   $ 68,398    $201,543   $199,589
   Cost of sales            45,297     47,908     135,560    137,784
                          --------   --------    --------   --------

   Gross profit             20,014     20,490      65,983     61,805
                          --------   --------    --------   --------
   Selling, advertising,
    general and
    administrative          19,565     19,104      63,827     65,477

   Depreciation and
    amortization               979      1,229       3,779      3,522

   Closed stores             4,277        587       5,019        723
   Interest expense, net       321        152       1,382        528
                          --------   --------    --------   --------

   Loss before income taxes
    and cumulative effect
    of accounting change    (5,128)      (582)     (8,024)    (8,445)

   (Provision for) benefit
    from income taxes       (1,058)      (386)         -       2,933
                          --------   --------    --------   --------

   Loss before cumulative
    effect of accounting
    change                  (6,186)      (968)     (8,024)    (5,512)

   Cumulative effect of
    accounting change
    (net of tax)                -          -           -      (3,404)
                          --------   --------    --------   --------

   Net loss               $ (6,186)  $   (968)   $ (8,024)  $ (8,916)
                          ========   ========    ========   ========

   Primary and fully
    diluted loss per common
    share before cumulative
    effect of accounting
    change                $   (.56)  $   (.09)   $   (.76)  $   (.53)

   Cumulative effect of
    accounting change
    (net of tax)                -          -           -        (.33)
                          --------   --------    --------   --------

   Primary and fully
    diluted loss per
    common share          $   (.56)  $   (.09)   $   (.76)  $   (.86)
                          ========   ========    ========   ========

CONTACT: 50-OFF Stores, Inc.

Pat L. Ross, 210/805-9300