Catherines Stores Corp. reports second quarter earnings per share up 13%.

MEMPHIS, Tenn.--(BUSINESS WIRE)--Aug. 23, 1995--Catherines Stores Corp. (NASDAQ:CATH) reported that net income per share for the quarter ended July 29, 1995, increased 13% to $2.6 million from $2.3 million in the prior year.

Earnings per share were $.34 compared to $.30 last year. Earnings for the first half of 1995 increased 16% to $4.9 million, or $0.63 per share, from $4.3 million, or $0.53 per share. In last year's first half, the write-off of deferred financing costs reduced earnings per share by $0.02.

Second quarter sales increased 9% to $68.9 million from $63 million. Comparable stores' sales increased 4.4% for the quarter. First half sales increased 7.5% to $136.8 million from $127.2 million. First half comparable stores' sales increased 2.3%.

During the first half of 1995, Catherines has opened 17 new stores. In the third quarter, the company plans to open 23 additional stores.

Catherines Stores Corp. is a Memphis-based specialty retailer selling large-size women's apparel in 421 stores in 38 states operating under the names Catherine's; PS ... Plus Sizes, Plus Savings; Added Dimensions and the Answer.

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               Catherines Stores Corp. and Subsidiaries
                 Consolidated Statements of Income

                           26 Weeks Ended          13 Weeks Ended
                        July 29,    July 30,    July 29,    July 30,
                         1995         1994        1995        1994
Net sales            $136,822,000 $127,244,000 $68,964,000 $63,008,000
Cost of sales,
 including buying
 and occupancy costs   92,106,000   85,155,000  46,306,000  42,137,000
Gross margin           44,716,000   42,089,000  22,658,000  20,871,000
Selling, general and
 administrative
  expenses             35,442,000   33,321,000  17,734,000  16,201,000
Amortization of
 intangible assets        604,000      979,000     302,000     485,000
Unusual items                 --       206,000         --          --
Operating income        8,670,000    7,583,000   4,622,000   4,185,000
Interest and
 other, net               427,000      425,000     243,000     242,000
Income before
 income taxes           8,243,000    7,158,000   4,379,000   3,943,000
Provision for
 income taxes           3,297,000    2,905,000   1,735,000   1,611,000
Net income           $  4,946,000 $  4,253,000 $ 2,644,000 $ 2,332,000
Net income per
 common share        $       0.63 $       0.53 $      0.34 $      0.30
Weighted average
 number of common
 shares outstanding     7,839,578    8,001,861   7,878,195   7,875,030

               Catherines Stores Corp. and Subsidiaries
                     Consolidated Balance Sheets

                                             July 29,     Jan. 28,
Assets                                         1995         1995
Current Assets:
 Cash and cash equivalents                $  3,248,000 $  2,000,000
 Receivables                                 4,732,000    4,269,000
 Merchandise inventory                      50,201,000   44,969,000
 Other current assets                        4,418,000    4,100,000
 Property and equipment, net                30,637,000   28,975,000
 Other assets and deferred charges           3,336,000    3,589,000
 Goodwill                                   25,080,000   25,433,000
 Total assets                             $121,652,000 $113,335,000

Liabilities and Stockholders' Equity
 Accounts payable and other
  current liabilities                     $ 38,094,000 $ 36,589,000
 Long-term bank debt                         2,750,000    3,250,000
 Other long-term liabilities                 6,836,000    4,580,000
 Stockholders' equity                       73,972,000   68,916,000
 Total liabilities and
  stockholders' equity                    $121,652,000 $113,335,000

CONTACT: Catherines Stores Corp., Memphis

David C. Forell, 901/363-3900, ext. 271