AMES REPORTS DECEMBER RESULTS
AMES REPORTS DECEMBER RESULTS ROCKY HILL, Conn., Jan. 22 /PRNewswire/ -- Ames Department Stores,
Inc. (NYSE: ADD) today announced net sales of $430.5 million for the five weeks ended Dec. 28, 1991, compared with net sales of $429.2 million for the five weeks ended Dec. 29, 1990. Comparable store sales increased .2 percent from $421.3 million in the prior year to $422.3 million for the five weeks ended Dec. 28, 1991. December represents the fourth consecutive month in which comparable store sales increased over the prior year.
Net sales are based on 371 stores, while comparable store sales are based on 367 stores. Ames also said that earnings before interest, taxes, Chapter 11 expenses and restructuring charges based on 371 stores, totaled $36.1 million in December, compared with $31.4 million for the same five-week period in the prior year, based on 455 stores. The current year's earnings were within the range of Ames' Nov. 13, 1991 8-K forecast. Gross margin for the period was below forecast by 1.9 percentage points, but this shortfall was substantially offset by expenses, which were lower (better) than forecast. Stephen L. Pistner, Ames' chairman and chief executive officer, said, "We are delighted with the results we achieved during the most important selling season of the year. Despite a weak Northeastern economy, our results for November and December, on a combined basis, were in line with our earlier forecast as reported in our 8-K of Nov. 13, 1991." (See chart) "December results, coupled with the filing of our plan reorganization on Jan. 13, demonstrate Ames' significant progress toward emerging from Chapter 11 as a financially sound and viable competitor in the retail market," Pistner said. Ames, which filed for protection under Chapter 11 of the U.S. Bankruptcy Code in April 1990, operates 371 stores on 15 Northeastern states. AMES DEPARTMENT STORES, INC. Selected Unaudited Financial Data - 371 Store Chain November and December, 1991 (In millions) This Year 11/13/91 Last Year Net Sales: Actual 8-K Forecast Range Actual November $250.1 $225.0 - $235.0 $244.1(A) December $430.5 $445.0 - $455.0 $429.2(A) Total $680.6 $670.0 - $690.0 $673.3(A) Earnings Before Interest, Taxes, Chapter 11 Expenses & Restructuring Charges: November $9.2 $0.0 - $3.0 $.6(B) December $36.1 $36.0 - $39.0 $31.4(B) Total $45.3 $36.0 - $42.0 $32.0(B) Net Income/(Loss) November $2.8 Not forecasted (6.2)(B) December $29.6 in the 11/13/91 25.1 (B) Total $32.4 8-K filling $18.9 (B) (A) Restated on a 371 store basis. (B) As reported in November and December of 1990 on 455 stores. -0- 1/22/92 /CONTACT: Doug Ewing or Bill Roberts of Ames, 203-257-2600, or 203-257-2666, or Andrea Priest of Ogilvy Adams and Rinehart, 212-557-0100, for Ames/ (ADD) CO: Ames Department Stores Inc. ST: Connecticut IN: REA SU: ERN SH-SM -- NY033 -- 2231 01/22/92 11:17 EST
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|Date:||Jan 22, 1992|
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