Braun's Fashions Reports Record Third Quarter Sales and Earnings; Earnings Per Diluted Share Increase 51%; Same-Store Sales Increase 16% During The Quarter.

MINNEAPOLIS--(BUSINESS WIRE)--Dec. 15, 1999--

Braun's Fashions Corporation (Nasdaq: BFCI) today reported record results for its third quarter ended November 27, 1999.

For the third quarter, net income increased to a record $3.9 million, or $0.83 per diluted share. In last year's third quarter, the Company reported earnings before extraordinary gain of $2.6 million, or $0.55 per diluted share. Net sales for the third quarter increased 29% to $39.8 million, compared to $30.8 million last year, while same-store sales increased 16% during the quarter.

For the nine months ended November 27, 1999, net income increased 49% to $6.3 million, or $1.36 per diluted share compared to net income before extraordinary gain of $4.2 million or $0.87 per diluted share last year. Net sales for the nine months ended November 27, 1999 increased 25% to $98.2 million from $78.8 million last year, while same-store sales increased 14% during the first nine months.

Bill Prange, Chairman and Chief Executive Officer of Braun's Fashions Corporation commented, "We are extremely pleased with our record third quarter performance resulting from across-the-board strength in all merchandise categories. Of particular note, we experienced strong sell-throughs during the quarter and our sweater business continued to perform extremely well, confirming our customers' favorable response to our strategy of featuring seasonal theme related merchandise assortments."

Mr. Prange continued, "The third quarter was a very important period for Braun's Fashions, with a number of significant accomplishments. Specifically we:

-- Increased our same-store sales by 16% with strong double-digit

increases in all three months. -- Improved our third quarter gross margin by 225 basis points by

eliminating two major promotional events which were held during

the third quarter of last year. -- Opened 15 new Christopher & Banks stores bringing our total for

the year to 33 stores. We also continued converting existing

Braun's stores to Christopher & Banks. For the year, we have

converted 23 stores to the Christopher & Banks name, and we now

operate 56 of our 223 stores as Christopher & Banks. -- Continued to build brand awareness in our markets as a result of

using the Christopher & Banks name. -- Announced a 3-for-2 stock split effective December 14, 1999 for

shareholders of record as of November 30, 1999. On a post-split

basis, third quarter earnings per diluted share were $0.55

compared to $0.37 per diluted share last year. For the nine

months ended November 27, 1999, split adjusted earnings per

diluted share were $0.90 compared to $0.58 for the first nine

months of last year. We believe this stock split will enhance

liquidity and trading volume of our stock and reinforces our

confidence in the continued growth of our business."

Mr. Prange concluded, "We are very enthusiastic about the momentum that we are seeing in our business. The third quarter ended on a positive note with strong post-Thanksgiving sales results and we remain optimistic as we enter the final selling days leading up to the Christmas holiday."

Braun's Fashions Corporation is a Minneapolis-based specialty retailer of women's clothing and accessories providing exclusive fashions under the Christopher and Banks label. Presently, the company has 223 stores operating in 26 states, located primarily in the northern regions throughout the United States.

This release contains forward-looking statements 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 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. The Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances 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 -0-

                     BRAUN'S FASHIONS CORPORATION
                     COMPARATIVE INCOME STATEMENT
        FOR THE QUARTER AND NINE MONTHS ENDED NOVEMBER 27, 1999
      (in thousands of dollars, except share and per-share data)

                         Three Months Ended        Nine Months Ended
                         Nov. 27,    Nov. 28,     Nov. 27,    Nov. 28,
                           1999        1998         1999       1998
                              (Unaudited)             (Unaudited)

Net sales                 $39,804    $30,826      $98,217     $78,771
Merchandise, buying
 and occupancy             24,123     19,373       62,599      51,091
  Gross profit             15,681     35,618       11,453      27,680
Selling, general
 and administrative         8,332      6,441       22,802      18,574
Depreciation
 and amortization             889        669        2,424       1,991
  Operating income          6,460      4,343       10,392       7,115
Interest, net                  86         84          185         304
  Income before income taxes
   & extraordinary gain     6,374      4,259       10,207       6,811
Income tax provision        2,454      1,618        3,930       2,588
  Net income before
   extraordinary gain       3,920      2,641        6,277       4,223
Extraordinary gain             --         35           --          35

Net income                 $3,920     $2,676       $6,277      $4,258

Basic earnings per share:
  Net income before
   extraordinary gain       $0.89      $0.56        $1.43       $0.92
  Extraordinary gain           --       0.01           --        0.01
  Net income                $0.89      $0.57        $1.43       $0.93

  Basic shares
   outstanding          4,417,735  4,667,545    4,382,803   4,582,077


Diluted earnings per share:
 Net income before
  extraordinary gain        $0.83      $0.55        $1.36       $0.87
 Extraordinary gain            --       0.01           --        0.01
 Net income (a)             $0.83      $0.56        $1.36       $0.88
 Diluted shares
  outstanding           4,730,918  4,815,432    4,629,388   4,852,197


(a)  On November 23, 1999, the Company announced a 3-for-2 stock split
     effective December 14,1999 for shareholders of record as of
     November 30,1999. On a post-split basis, third quarter earnings
     per diluted share were $0.55, compared to $0.37 per diluted share
     last year. For the nine months ended November 27, 1999, split
     adjusted earnings per diluted share were $0.90, compared to $0.58
     for the nine months ended November 28, 1998.

                     BRAUN'S FASHIONS CORPORATION
                       COMPARATIVE BALANCE SHEET
                       (in thousands of dollars)


                                        November 27,      November 28,
                                            1999              1998
                                        (Unaudited)        (Unaudited)
ASSETS
 Current assets:
   Cash and cash equivalents           $    8 ,936        $    9,544
   Merchandise inventories                  15,682            13,372
   Other current assets                      3,759             3,111
    Total current assets                    28,377            26,027

Equipment and improvements, net             17,383            11,833

Other assets                                 1,878             1,444

      Total assets                      $   47,638        $   39,304


LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
   Accounts payable                     $    1,628        $    2,068
   Accrued liabilities                       6,427             4,301
   Current maturities of long-term debt        239               266
   Income taxes payable                      1,751             1,421
     Total current liabilities              10,045             8,056

 Other liabilities and long-term debt:
  Long-term debt                             5,015             5,107
  Other                                      1,103             1,023
   Total other liabilites and long-term debt 6,118             6,130

 Stockholders' equity:
     Common stock                               49                47
     Additional paid-in capital             29,870            29,193
     Retained earnings (deficit)             4,830            (3,416)
     Other stockholders' equity             (3,274)             (706)
      Total stockholders' equity            31,475            25,118

      Total liabilities and
       stockholders' equity             $   47,638         $  39,304