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BRAUNS FASHIONS CORPORATION REPORTS SECOND QUARTER RESULTS

BRAUNS FASHIONS CORPORATION REPORTS SECOND QUARTER RESULTS
    MINNEAPOLIS, Sept. 30 /PRNewswire/ -- Brauns Fashions Corporation (NASDAQ-NMS: BFCI) announced net sales for the second quarter ended Aug. 29, 1992 were $18,991,000 compared to $17,484,000 for the same period last year or an 8.6 percent increase.  Same store sales decreased 2.6 percent from last year.  Net income was $367,000 or $.10 per share as compared to $306,000 or $.12 per share.  Although revenues and earnings increased during the quarter, earnings per share (EPS) for the quarter and the six months were impacted by the dilution of shares as a result of the company's March 1992 initial public offering.
    Net sales for the six months ended Aug. 29, 1992 were $36,759,000, an increase of 6.1 percent over $34,637,000 for the same period last year.  Same store sales were down 3.4 percent.  Net income for the first six months was $913,000, down from $937,000.  Earnings per share were $.26 compared with $.36 last year.
    The coldest spring and summer weather in 77 years continued throughout the second quarter, adversely affecting customer buying patterns during June and July in the 16 state area where Brauns does business.  The decrease in same store sales for the second quarter was due to these cool temperatures as well as the continuing sluggish economy.  However, management acted aggressively to move early fall and transitional merchandise into the stores by mid July.  Customers responded well to the new fall fashions and sales turned upward in August due to the contribution of new stores as well as increased sales in existing stores.
    All eight (six Brauns and two Gigi) of the planned new stores for the second quarter were opened according to schedule, including a Brauns store and a Gigi store in the new Mall of America in Bloomington, Minn. Fourteen stores have been opened so far this year and six more stores are planned to open during the third quarter.  This will bring the total number of stores to 163 by Dec. 31, 1992.
    The gross profit margin for the second quarter was 26.4 percent compared to 26.2 percent for the same period last year.  Selling, general and administrative expenses were 23.1 percent versus 22.3 percent for the same quarter last year.  This increase included general inflationary costs, additional expenses for the new stores and added MIS (Management Information System) expenses related to a major hardware and software conversion.
    Interest expense was down $150,000 in the second quarter as a result of lower borrowings, primarily due to the company paying down all of its long-term debt ($5,650,000) with proceeds of the initial public offering.
    For the six month period, the gross profit margin was 27.7 percent, compared to 28.0 percent for the same period last year.  Selling, general and administrative expenses were 23.4 percent versus 22.5 percent last year.  Interest expense was down $280,000.
    Brauns Fashions Corporation is a Minneapolis-based retailer of women's specialty apparel.  As of Aug. 29, 1992, the company operated a chain of 157 stores in 16 Midwestern states.
                        BRAUNS FASHIONS CORPORATION
                            Financial Highlights
              (Dollars in thousands, except per share amounts)
                                (Unaudited)
                                          Three Months Ended
                                         8/29/92      8/31/91
    Net sales                            $18,991      $17,484
    Net income                              $367         $306
    Per common share                       $0.10        $0.12
                        CONSOLIDATED FINANCIAL DATA
              (Dollars in thousands, except per share amounts)
                                              Three Months Ended
                                       8/29/92  Percent  8/31/91 Percent
                                               to sales         to sales
    Net sales                          $18,991   100.0   $17,484   100.0
    Cost of sales                       13,975    73.6    12,910    73.8
    Gross profit                         5,016    26.4     4,574    26.2
    Selling, general and
     administrative expenses             4,387    23.1     3,892    22.3
    Operating income                       629     3.3       682     3.9
    Interest expense                        38      .2       188     1.1
    Income before taxes                    591     3.1       494     2.8
    Income taxes                           224     1.2       188     1.1
    Net income                            $367     1.9      $306     1.7
    Net income/common share (a)          $0.10      --     $0.12      --
   (a) Based on the weighted average number of outstanding shares of common stock and common stock equivalents of 3,768,792 for the period ended Aug. 29, 1992 and 2,608,757 for the period ended Aug. 31, 1991.
                        BRAUNS FASHIONS CORPORATION
                            Financial Highlights
              (Dollars in thousands, except per share amounts)
                                (Unaudited)
                                           Six Months Ended
                                         8/29/92      8/31/91
    Net sales                            $36,759      $34,637
    Net income                              $913         $937
    Per common share                       $0.26        $0.36
                        CONSOLIDATED FINANCIAL DATA
              (Dollars in thousands, except per share amounts)
                                               Six Months Ended
                                       8/29/92  Percent  8/31/91 Percent
                                               to sales         to sales
    Net sales                          $36,759   100.0   $34,637   100.0
    Cost of sales                       26,570    72.3    24,937    72.0
    Gross profit                        10,189    27.7     9,700    28.0
    Selling, general and
     administrative expenses             8,592    23.4     7,784    22.5
    Operating income                     1,597     4.3     1,916     5.5
    Interest expense                       125      .3       405     1.2
    Income before taxes                  1,472     4.0     1,511     4.3
    Income taxes                           559     1.5       574     1.6
    Net income                            $913     2.5      $937     2.7
    Net income/common share (a)          $0.26      --     $0.36      --
    (a) Based on the weighted average number of outstanding shares of common stock and common stock equivalents of 3,560,459 for the period ended Aug. 29, 1992 and 2,608,757 for the period ended Aug. 31, 1991.
    -0-             09/30/92
    CONTACT:  Trish Colby of Brauns, 612-941-9590
    (BFCI) CO:  BRAUNS FASHIONS CORPORATION IN:  REA SU:  ERN ST:  MN -- MN004 -- X663  09/30/92
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Date:Sep 30, 1992
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