Braun's Fashions Reports 149% Increase in Fourth Quarter Earnings Per Share.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--April 5, 2000 ~ Fourth Quarter Gross Margin Increases 910 Basis Points ~ ~ Full Year Earnings Per Share Increases 90% ~ Braun's Fashions Corporation (Nasdaq: BFCI BFCI Butterfly Conservation Initiative ) today reported record results for its fourth quarter and year ended February February: see month. 26, 2000. For the fourth quarter, net income increased 167% to a record $5.3 million or $0.72 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to $2.0 million or $0.29 per diluted share in the prior year's period. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the fourth quarter increased 44% to $45.2 million, compared to $31.4 million last year, while same-store sales Same-store sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year. increased 26% during the quarter. For the year ended February 26, 2000, net income rose 86% to $11.5 million or $1.64 per diluted share, compared to net income of $6.2 million or $0.86 per diluted share last year. Net sales for the year increased 30% to $143.4 million from $110.1 million last year, while same-store sales increased 17% for the year. Bill Prange, Chairman and Chief Executive Officer of Braun's commented, "We are extremely pleased to report record fourth quarter and year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. results, which significantly exceeded our expectations. Our fourth quarter was particularly successful, as enthusiastic customer response to our merchandise MERCHANDISE. By this term is understood all those things which merchants sell either wholesale or retail, as dry goods, hardware, groceries, drugs, &c. It is usually applied to personal chattels only, and to those which are not required for food or immediate support, but such as remain assortments resulted in exceptional sell-throughs at regular prices." Mr. Prange continued, "Fiscal 2000 was a year filled with significant accomplishments. Specifically, we: - Improved our fourth quarter gross margin by 910 basis points and our total year gross margin by 360 basis points. - Maintained our strong inventory management, finishing the year with a 6% increase in inventory while increasing our store count by 14%. - Advanced our continuing development as a branded retailer featuring the Christopher & Banks label. Our brand development initiatives and overall heightened brand awareness contributed significantly to our improvement in gross margin and also allowed us to eliminate three major promotional events during the year. - Increased same-store sales by 26% in the fourth quarter and by 17% for the full year, with our newest stores, those opened since fiscal 1998, posting comp comp See comparison. store sales increases significantly above the Company average. - Opened 33 new Christopher & Banks stores, which as a group, had sales that exceeded our internal plan by 10% for the portion of the year that these stores were open. At year-end, approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 30% of our stores were less than three years old. - Converted 23 existing Braun's stores to the Christopher & Banks name, allowing us to operate 56 of our 223 stores under the Christopher & Banks name at year-end. - Stated plans to open 35 new Christopher & Banks stores in fiscal 2001. - Announced the launch of a new division catering to the women's large size market. We plan to open approximately 20 stores under the name C.J. Banks in Fall 2000, carrying sizes 14w to 24w. This new division will enable us to offer our distinctive "Christopher & Banks" styling, quality and affordability to a customer segment not addressed by our current stores. - Completed a 3-for-2 stock split on December December: see month. 14 1999, thereby enhancing liquidity and the trading volume Trading volume The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares. of our stock. Mr. Prange concluded, "As we begin our new fiscal year, we are excited about the opportunities that lie ahead, specifically, with regard to the expansion of our Christopher & Banks branded concept and the launch of our new C.J. Banks stores. We are very encouraged by the positive momentum we are seeing in our business and are highly optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth prospects." Braun's Fashions Corporation is a Minneapolis-based specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. retailer of women's clothing and accessories providing exclusive fashions under the Christopher and Banks label. Presently, the Company has 236 stores operating in 26 states, located primarily in the northern regions throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . This release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. regarding future performance of the Company. The achievement of such results is subject to certain risks and uncertainties, including changes in economic, market and weather conditions, the effect of consumer tastes and spending habits, the realization (specification) realization - A UML semantic relationship between a classifier that specifies a contract and another classifier that guarantees to carry it out. [Handout by Mr. David Gillibrand]. of expected economies gained through the use of private label and direct import merchandise, management of growth and other factors outside the Company's control,including factors discussed from time to time in the Company's filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management's analysis only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . The Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or that may arise after the date hereof. For more information on Braun's Fashions Corporation, visit our website at www.braunsfashions.com or www.christopherandbanks.com
BRAUN'S FASHIONS CORPORATION
COMPARATIVE INCOME STATEMENT
FOR THE QUARTER AND YEAR ENDED FEBRUARY 26, 2000
(in thousands of dollars, except per-share data and footnote
information)
Three Months Ended Year Ended
Feb. 26 Feb. 27 Feb. 26, Feb. 27
2000 1999 2000 1999
(Unaudited)
Net sales $ 45,185 $ 31,371 $ 143,402 $ 110,142
Merchandise, buying
and occupancy 25,266 20,397 87,865 71,488
Gross profit 19,919 10,974 55,537 38,654
Selling, general and
administrative 10,504 7,047 33,306 25,621
Depreciation and
amortization 963 687 3,387 2,679
Operating income 8,452 3,240 18,844 10,354
Interest, net (138) (21) 47 282
Income before income
taxes & extraordinary
gain 8,590 3,261 18,797 10,072
Income tax provision 3,332 1,292 7,262 3,880
Net income before
extraordinary gain 5,258 1,969 11,535 6,192
Extraordinary gain 0 0 0 35(1)
Net income $ 5,258 $ 1,969 $ 11,535 $ 6,227
Basic earnings per share:
Net income before
extraordinary gain $ 0.78 $ 0.30 $ 1.75 $ 0.90
Extraordinary gain 0.00 0.00 0.00 0.01
Net income (2) $ 0.78 $ 0.30 $ 1.75 $ 0.91
Basic shares outstanding 6,709 6,630 6,608 6,812
Diluted earnings per share:
Net income before
extraordinary gain $ 0.72 $ 0.29 $ 1.64 $ 0.86
Extraordinary gain 0.00 0.00 0.00 0.01
Net income (2) $ 0.72 $ 0.29 $ 1.64 $ 0.87
Diluted shares
outstanding 7,297 6,808 7,032 7,161
(1) In fiscal 1999 the company recorded an extraordinary gain of
$35,000 on the purchase at a discount from par of $4,676,000
principal face amount of its 12% Senior Notes due 2005.
(2) All earnings per share amounts reported above reflect the effect
of a 3-for-2 stock split effective December 14, 1999.
-0-
BRAUN'S FASHIONS CORPORATION
COMPARATIVE BALANCE SHEET
(in thousands of dollars)
February 26, February 27,
2000 1999
ASSETS
Current assets:
Cash and cash equivalents $ 22,686 $ 12,588
Accounts receivable 1,171 1,398
Merchandise inventories 11,421 10,799
Prepaid expenses 1,315 548
Current deferred tax asset 698 275
Total current assets 37,291 25,608
Equipment and improvements, net 19,781 12,955
Other assets:
Long-term deferred tax asset 1,630 1,468
Other 17 29
Total other assets 1,647 1,497
Total assets $ 58,719 $ 40,060
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,650 $ 2,893
Accrued liabilities 10,190 5,472
Current maturities of long-term
debt 170 272
Income taxes 2,181 547
Total current liabilities 15,191 9,184
Long-term obligations:
Long-term debt 5,053 5,074
Accrued rent obligation 1,090 1,072
Total long-term obligations 6,143 6,146
Stockholders' equity:
Common stock 73 71
Additional paid-in capital 30,568 29,281
Retained earnings (deficit) 10,088 (1,447)
Other stockholders' equity (3,344) (3,175)
Total stockholders' equity 37,385 24,730
Total liabilities and
stockholders' equity $ 58,719 $ 40,060
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