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HE-RO GROUP LTD. REPORTS FINANCIAL RESULTS

 NEW YORK, Oct. 25 /PRNewswire/ -- The He-Ro Group, Ltd. (NYSE: HRG), announced financial information for the quarter ended Aug. 31, 1993, which includes the impact of the company's restructuring plan adopted by the board of directors at a special meeting of the board on Oct. 14, 1993.
 Under the restructuring plan, during the fiscal year ending May 31, 1994, and thereafter, the company will refocus substantially all of its resources on its core evening and special occasion wear business, primarily its Black Tie by Oleg Cassini and Niteline product lines, and its retail outlet stores. The company will also discontinue producing moderate dresses and sportswear and bridge dresses and suits and close those divisions responsible for the discontinued product lines. As a result of the adoption of the restructuring plan, the company recorded a pre-tax restructuring charge to earnings of approximately $16 million. In addition, the company recorded a reserve of approximately $2.3 million in connection with a previously established deferred tax asset relating to net operating loss carryforwards.
 Net sales of $34.9 million for the first quarter of fiscal 1994 decreased by $1.6 million (4.6 percent) compared to net sales of $36.5 million for the first quarter of fiscal 1993. The company's net income (loss) decreased to $(21.1 million), or $(3.15) per share, for the first quarter of fiscal 1994 compared to net income of $200,000, or 3 cents per share, for the first quarter of fiscal 1993.
 HE-RO GROUP LTD.
 Financial Statement Highlights
 (in thousands of dollars)
 Periods ended First Quarter
 Aug. 31, 1993 1992
 Net sales $34,849 $36,519
 Cost of sales 25,691 24,467
 Gross profit 9,158 12,052
 Operating expenses
 Selling, general & administrative
 expense 11,158 11,539
 Restructuring charges 16,000 --
 Total 27,158 11,539
 Operating income (loss) (18,000) 513
 Interest expense income 727 527
 Income (loss) before income taxes (18,727) (14)
 Provision for income taxes 2,398 (210)
 Net income (loss) $21,125) $196
 Net income (loss) per common
 share $(3.15) $0.03
 Weighted average shares outstanding 6,717 6,717
 The He-Ro Group, Ltd., produces and markets a variety of women's apparel under its proprietary labels including "Niteline" and under licensed designer labels, including "Black Tie by Oleg Cassini."
 -0- 10/25/93
 /CONTACT: Richard Woolwine, executive vice president of He-Ro Group, 201-601-5641/
 (HRG)


CO: He-Ro Group, Ltd. ST: New York IN: TEX SU: ERN

TW-LG -- NY092 -- 6547 10/25/93 17:05 EDT
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Publication:PR Newswire
Date:Oct 25, 1993
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