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ANDOVER TOGS, INC., REPORTS THIRD QUARTER NET UP 26 PERCENT ON 13 PERCENT REVENUE GAIN

 ANDOVER TOGS, INC., REPORTS THIRD QUARTER NET UP
 26 PERCENT ON 13 PERCENT REVENUE GAIN
 NEW YORK, Oct. 12 /PRNewswire/ -- Andover Togs, Inc. (NASDAQ: ATOG) announced today that net earnings for the third quarter ended Aug. 31, 1992, advanced 26 percent to $689,000 or 16 cents per share, from $547,000 or 12 cents per share, for the third quarter of fiscal 1991 as net sales rose 13 percent to $28,456,000 from $25,088,000 a year ago.
 Chairman and President William L. Cohen said, "Our strategy of building long-term supply relationships and increasing our volume of business with major chain store customers is primarily responsible for the increase in net sales for the quarter."
 Cohen added that the lingering recession and continuing intense price competition led to a reduction in gross margin for the third quarter, from 22.9 percent of net sales for last year's third quarter to 21.4 percent this year. He said that gross profit also was affected by minimum royalty payments and termination expenses associated with the company's decision to terminate its ladies' division license agreement with Sasson at Dec. 31, 1992.
 Cohen said, "We currently expect net sales for the fourth quarter ending Nov. 30, 1992, to be similar to the third quarter and thus to exceed last year's fourth quarter net sales of $25,761,000. However, the reduction in gross margin experienced in the third quarter is likely to continue in the fourth quarter, which together with other factors, indicate that net earnings for the fourth quarter probably will be below last year's $649,000, or 15 cents per share."
 For the nine months ended Aug. 31, 1992, net earnings increased 117 percent to $1,201,000, or 27 cents per share, from $553,000, or 12 cents per share, for the first nine months of the prior fiscal year. "Net earnings for the first nine months of fiscal 1992 are equal to net earnings for all of fiscal 1991," Cohen noted. Net sales rose to $67,201,000 from $66,328,000 a year earlier. Last year's net sales included $3,447,000 attributable to an 80 percent-owned subsidiary that was sold in April 1991.
 Pretax earnings for this year's first nine months were $2,109,000, 63 percent ahead of pretax earnings of $1,293,000 for the same period a year ago before the loss on the sale of the 80 percent-owned subsidiary. The pretax loss on the sale for the subsidiary was $268,000.
 Andover Togs, Inc. manufactures children's and ladies' apparel. The company currently has a licensing agreement with Sasson(R) for children's wear products and a boy's wear license for the Tonka(R) trademarks.
 ANDOVER TOGS, INC. AND SUBSIDIARIES
 Summary of Operations
 (in $000s except per share)
 Periods ended Three months Nine months
 Aug. 31: 1992 1991 1992 1991
 Net sales $28,456 $25,088 $67,201 $66,328
 Earnings before loss
 on sale of subsidiary
 and provision for
 income taxes 1,185 972 2,109 1,293
 Loss on sale of
 subsidiary -- -- -- 268
 Earnings before provision
 for income taxes 1,185 972 2,109 1,025
 Net earnings 689 547 1,201 553
 Net earnings per
 common share $.16 $.12(A) $.27 $.12(A)
 Weighed average
 common shares
 outstanding 4,398,000 4,426,100(A) 4,397,500 4,430,300(A)
 (A) -- Restated for the 25 percent stock split distributed on May 4, 1992, to shareholders of record on April 21, 1992, and the 10 percent stock dividend distributed on Dec. 9, 1991, to shareholders of record on Nov. 25, 1991.
 -0- 10/12/92
 /CONTACT: Alan Kanis, treasurer of Andover Togs, Inc., 212-244-0700/
 (ATOG) CO: Andover Togs, Inc. ST: New York IN: REA SU: ERN


CK-TS -- NY024 -- 8782 10/12/92 10:26 EDT
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Date:Oct 12, 1992
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