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FREDERICK'S OF HOLLYWOOD REPORTS HIGHER SALES AND EARNINGS

 LOS ANGELES, March 31 /PRNewswire/ -- Frederick's of Hollywood Inc. (NYSE: FHO) today reported increases in net earnings and sales for the second quarter and first half of the current fiscal year, compared with the corresponding prior-year periods.
 For the three months ended Feb. 27, 1993, net earnings rose 4 percent to $2,688,000, equal to $.30 per share, from $2,583,000, or $.29 per share, a year ago. Sales for the three-month period increased 13 percent to $39,007,000 from $34,654,000 last year.
 For the year-to-date period, net earnings also advanced 4 percent to $3,203,000, equal to $.36 per share, from $3,092,000, or $.34 per share, a year ago. Sales for the first half of the current fiscal year rose 14 percent to $68,768,000 from $60,327,000 for the first six months of the prior fiscal year.
 George W. Townson, chairman and chief executive officer, said the improved operating results for second quarter were achieved despite relatively soft Christmas and Valentine selling periods for the retail stores. He said the earnings increase was primarily attributable to a strong performance from the company's mail-order subsidiary.
 Townson said the store network posted a 2 percent increase in operating profits on a 6 percent sales gain for the quarter. Growth in sales reflected more stores in operation. On a comparable basis, the retail stores nationwide registered essentially the same sales as the prior-year period, with the comparable California units declining more than 6 percent. No new stores were opened in the second quarter, and four were closed.
 Operating profits rose 41 percent in the second quarter for the mail order subsidiary, and sales rose 26 percent. Townson said the improvements primarily reflected more catalogs distributed, along with increased productivity and lower advertising expenses per catalog.
 "Moving into the second half of the fiscal year, the intimate apparel segment of the retail industry continues to be sluggish, and fewer new store openings are planned," said Townson. "In addition, we do not anticipate the same high level of sales increase for our mail order operations in the second half of the year as experienced during the first six months.
 "Accordingly, barring an unforeseen upturn in business activity, operating results for the third and fourth quarters are not expected to show improvements over the comparable prior-year periods. Nevertheless, the company's balance sheet remains strong, with no long-term debt, and we are continuing to closely monitor all costs and seek ways to enhance sales and earnings," Townson added.
 At the close of the second quarter, the company operated 207 specialty apparel stores in 39 states and a mail-order division that serves customers in all 50 states.
 FREDERICK'S OF HOLLYWOOD INC. AND SUBSIDIARIES
 Consolidated Condensed Statement of Earnings
 (Unaudited)
 Three Months Ended Six Months Ended
 Feb. 27, Feb. 29, Feb. 27, Feb. 29,
 1993 1992 1993 1992
 Net sales $39,007,000 $34,654,000 $68,768,000 $60,327,000
 Earnings before
 income taxes 4,595,000 4,416,000 5,475,000 5,286,000
 Income taxes 1,907,000 1,833,000 2,272,000 2,194,000
 Net earnings 2,688,000 2,583,000 3,203,000 3,092,000
 Net earnings
 per share $.30 $.29 $.36 $.34
 Weighted average
 number of shares
 outstanding 8,932,000 8,981,000 8,913,000 9,006,000
 -0- 3/31/93
 /CONTACT: George W. Townson, chairman and CEO, or John B. Hatfield, of Frederick's of Hollywood, 213-466-5151; or Roger S. Pondel of Pondel Parsons & Wilkinson, 310-207-9300, for Frederick's of Hollywood/
 (FHO)


CO: Frederick's of Hollywood Inc. ST: California IN: REA SU: ERN

JL-LS -- LA005 -- 1458 03/31/93 11:31 EST
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Date:Mar 31, 1993
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