FAY'S INCORPORATED ESTIMATES THIRD QUARTER EARNINGS TO BE BELOW EXPECTATIONS
FAY'S INCORPORATED ESTIMATES THIRD QUARTER EARNINGS
TO BE BELOW EXPECTATIONS
LIVERPOOL, N.Y., Nov. 8 /PRNewswire/ -- Fay's Incorporated (NYSE: FAY) expects to report that net income for the third quarter ended Oct. 6, 1991 will be between $.05 and $.08 per share. Analysts estimates have ranged from $.17 to $.23 per share. Net earnings for the third quarter of last year were $.12 per share, after an extraordinary charge of $.05 per share relating to the redemption of the company's 13-3/4 percent subordinated debentures.
Sales for the third quarter increased 27.5 percent, while sales from comparable stores (stores open one year or more as of Oct. 26, 1991) increased 3.5 percent for the quarter. The company was operating 240 stores at the end of last year's third quarter, as compared to 307 stores at the end of this year's third quarter, including 43 former Carls Drug Stores acquired on April 29 of this year.
Fay's previously reported first quarter net earnings of $.12 per share and second quarter net earnings of $.08 per shrae. Net earnings for the first three quarters of year ended Jan. 26, 1991 were $.39 per share, after giving effect to extraordinary charges of $.08 per share.
Henry A. Panasci, Jr., chairman of the board of Fay's stated, "Pharmacy sales and sales of necessities have been steady. However, sales of seasonal and general merchandise that depend on discretionary spending have not met expectations at our Fay's Drug and Paper Cutter stores. The first week of November showed some improvement but our expectations for the Christmas season are less than what they were a couple of months ago. Consequently, we have taken steps to improve our cost containment and marketing efforts."
At the end of the third quarter, Fay's was operating 250 drug stores, 28 Wheels Discount Auto Supply Stores and 29 Paper Cutter stores.
/CONTACT: Henry A. Panasci, Jr., of Fay's Incorporated, 315-451-8000/
(FAY) CO: Fay's Incorporated ST: New York IN: REA SU: LC -- CL016 -- 2708 11/08/91 16:26 EST