Printer Friendly

BRAUNS FASHIONS CORPORATION REPORTS FIRST QUARTER RESULTS

 MINNEAPOLIS, June 22 /PRNewswire/ -- Brauns Fashions Corporation (NASDAQ-NMS: BFCI) today announced record sales for the first quarter, ended May 29, 1993, of $21,000,000, an increase of 18 percent over $17,768,000 for the same period last year. Same store sales increased 2 percent. Net income for the first quarter, before the cumulative effect of an adjustment relating to a change in accounting for income taxes (FAS 109), was $706,000. This compares to earnings of $546,000 for the comparable quarter last year, an increase of 29 percent. Earnings per share, before the accounting change, were $.18 compared to $.16 last year.
 Due to a one-time accounting adjustment resulting from the adoption of Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes," the company's net earnings were augmented in the first quarter by $1,100,000, or $.27 per share. Net income after the accounting change was $1,806,000 or $.45 per share.
 Although both revenues and earnings increased during the quarter, earnings per share (EPS) were impacted by the dilution of shares as a result of the company's March 1992 initial public offering and due to the required inclusion of outstanding warrants and options in the EPS calculation. The net effect of this dilution was $.03 per share.
 Gross profit of $6,955,000 for the quarter was 33.1 percent of sales compared to 31.9 percent for the same quarter last year. The favorable gross profit margin comparison was primarily due to lower cost of merchandise.
 Selling, general and administrative expenses were 24.7 percent of sales for the current quarter versus 23.7 percent last year. Depreciation and amortization was 2.7 percent compared with 2.8 percent a year ago. Interest expense of $71,000 decreased $17,000 from the same quarter last year, due to lower average borrowings and lower interest rates.
 Nicholas H. Cook, chief executive officer of Brauns, said, "We performed well in the first quarter, despite a challenging retail environment. Sales were modestly softer than anticipated due to an ongoing sluggish economy and the resulting weakness in consumer confidence and spending. Business in our operating area was also affected by unseasonably cold spring temperatures for the second year in a row. While remaining competitive in an extremely promotional retail atmosphere, we are pleased that we were able to protect margins and control inventory levels. We are confident of our merchandise assortment, and overall strategic direction. We opened 13 new stores, as scheduled, during the first quarter and plan to open 14 additional new stores in calendar year 1993."
 Cook added, "In the first quarter, we were also able to convert to our new on-line interactive computer system, which is the culmination of a two-year project led by IBM. With more timely information, we will be in a good position to more effectively drive our business in the future."
 Brauns Fashions Corporation, based in Minneapolis, is a regional retailer of women's fashions that currently operates 172 stores in 18 states, primarily in the Midwest and Pacific Northwest. The company's common stock trades on the NASDAQ National Market System under the symbol BFCI.
 BRAUNS FASHIONS CORPORATION
 Financial Highlights
 (Dollars in thousands, except per share amounts)
 (Unaudited)
 Three Months Ended
 5/29/93 5/30/92
 Net sales $21,000 $17,768
 Net income before cumulative effect
 of change in accounting principle 706 546
 Cumulative effect of change in
 accounting principle
 (adoption of FAS 109) 1,100 --
 Net income $1,806 $546
 Per common share (a):
 Before accounting change 0.18 0.16
 Accounting change 0.27 --
 Net income per common share $0.45 $0.16
 Three Months Ended
 5/29/93 Percent 5/30/92 Percent
 to Sales to Sales
 Net sales $21,000 100.0 $17,768 100.0
 Cost of sales 14,045 66.9 12,100 68.1
 Gross profit 6,955 33.1 5,668 31.9
 Selling, general
 and administrative 5,185 24.7 4,204 23.7
 Depreciation and amortization 560 2.7 495 2.8
 Operating income 1,210 5.7 969 5.4
 Interest expense 71 .3 88 .4
 Income before income taxes 1,139 5.4 881 5.0
 Provision for income taxes 433 2.0 335 1.9
 Net income before cumulative
 effect of change in
 accounting principle 706 3.4 546 3.1
 Cumulative effect of change
 in accounting principle
 (adoption of FAS 109) 1,100 5.2 -- --
 Net income $1,806 8.6 $546 3.1
 Per common share (a):
 Before accounting change $.18 -- $.16 --
 Accounting change .27 -- -- --
 Net income per common share $.45 -- $.16 --
 (a) Based on the weighted average number of outstanding shares of common stock and common stock equivalents of 3,990,787 for the period ended May 29, 1993 and 3,352,125 for the period ended May 30, 1992.
 -0- 6/22/93
 /CONTACT: Patricia Colby of Brauns Fashions, 612-828-8100/
 (BFCI)


CO: Brauns Fashions Corporation ST: Minnesota IN: REA SU: ERN

AL -- MN003 -- 4728 06/22/93 17:20 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jun 22, 1993
Words:840
Previous Article:SPORT CHALET ANNOUNCES YEAR-END RESULTS
Next Article:ST. JUDE MEDICAL ANNOUNCES NEW VICE PRESIDENT - ADMINISTRATION
Topics:


Related Articles
BRAUNS FASHIONS CORPORATION REPORTS SECOND QUARTER RESULTS
BRAUNS FASHIONS CORPORATION REPORTS FOURTH QUARTER AND YEAR END RESULTS
BRAUNS FASHIONS CORPORATION ANNOUNCES EFFECTS OF WEATHER AND MIDWEST FLOODING ON CORPORATE EARNINGS
BRAUNS FASHIONS CORPORATION REPORTS SECOND QUARTER RESULTS
BRAUNS FASHIONS CORPORATION ANNOUNCES LOWER FOURTH QUARTER EARNINGS EXPECTATIONS
BRAUNS FASHIONS CORPORATION FORECASTS SECOND QUARTER EARNINGS SHORTFALL
BRAUNS FASHIONS CORPORATION REPORTS FIRST QUARTER RESULTS
BRAUNS SECURES FINANCING ARRANGEMENTS
BRAUNS ANTICIPATES FAVORABLE RESOLUTION OF FINANCING ISSUES
BRAUNS FASHIONS CORPORATION REPORTS SECOND QUARTER RESULTS

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters