Donnkenny, Inc. reports second quarter results.

NEW YORK--(BUSINESS WIRE)--July 10, 1996--Donnkenny, Inc. (Nasdaq: DNKY) today announced financial results for the second quarter ended June 1, 1996.

Net sales for the second quarter of fiscal 1996 increased 37.2% to $55.0 million from $40.1 million for the comparable period in 1995. Net income for the second quarter of fiscal 1996 increased 31.8% to $2.9 million, or $0.20 per share, compared to $2.2 million, or $0.16 per share in the second quarter of 1995.

Net sales for the first six months of fiscal 1996 increased 35.2% to $107.2 million from $79.3 million for the same period in 1995. Net income for the first six months increased 27.9% to $5.5 million, or $0.39 per share, compared to $4.3 million, or $0.31 per share for the same period in 1995.

Richard Rubin, President and Chief Executive Officer, noted, "We are very pleased with the results achieved in the second quarter. We are already achieving benefits from synergies due to the integration of our Beldoch and Oak Hill divisions and continue to experience strong performance in our core lines. Looking ahead, we are excited about the increasing strength of our products in all retail categories and increased growth in net sales and net profits."

Donnkenny, Inc. designs, manufactures, imports and markets a broad line of moderately-priced women's sportswear and markets women's, men's and children's sportswear and intimate apparel featuring various licensed cartoon characters. Its products are sold nationwide to approximately 27,000 stores, representing approximately 11,000 individual operations and retail groups. -0-

                   DONNKENNY, INC. AND SUBSIDIARIES

             Consolidated Statements of Income (Unaudited)
            (In Thousands, Except Share and Per Share Data)

             For the three months and the six months ended
                     June 1, 1996 and June 3, 1995

                      Three Months  Three Months  Six Months  Six Months
                         Ended         Ended         Ended       Ended
                        6/1/96        6/3/95        6/1/96      6/1/95

Net sales               $54,996       $40,145      $107,190     $79,257

Cost of sales            39,523        28,473        76,840      56,199
    Gross profit         15,473        11,672        30,350      23,058

Selling, general and
 administrative expenses  9,126         7,244        18,068      14,191

Amortization of
 goodwill and other
 related acquisition
 costs                      368           175           728         375

    Operating income      5,979         4,253        11,554       8,492
    Interest expense      1,108           568         2,221       1,239
    Income before
     income taxes         4,871         3,685         9,333       7,253

Income taxes              1,992         1,510         3,799       2,972

    Net income           $2,879        $2,175        $5,534      $4,281

Income per common
 share                    $0.20         $0.16         $0.39       $0.31

Weighted average
 number of common
 & common equivalent
 shares outstanding  14,249,097    13,734,224    14,198,272  13,695,562

CONTACT: Donnkenny, Inc.

Ed Creevy

Chief Financial Officer

212/730-7770 Ext. 3039

or

Morgen-Walke Associates

Investor Relations:

David Walke/Howard Zar

Shannon Moody 

Press: Michael McMullan 

212/850-5600