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 NEW YORK, Sept. 2 /PRNewswire/ -- Bernard Chaus, Inc. (NYSE: CHS), today reported its results for the fourth quarter and fiscal year ended June 30, 1993.
 For the 1993 fourth quarter, the company reported net sales of $54.7 million, down from $62.1 million in the fourth quarter of fiscal 1992. The company had a net loss of $9.9 million, or 54 cents per share, in fiscal 1993's fourth quarter compared to net income of $2.2 million, or 12 cents per share, in the fourth quarter of fiscal 1992.
 For the 1993 fiscal year, the company reported net sales of $235.8 million and a net loss of $11.0 million, or 60 cents per share, as compared with net sales of $254.2 million and net income of $5.5 million, or 30 cents per share, in fiscal 1992.
 Josephine Chaus, chairwoman and chief executive officer, said: "Typical of the fashion industry, the company's performance was adversely affected by weak consumer spending and associated caution displayed by retailers. The persistence of this economic weakness, which exceeded our expectations, resulted in an increase in our inventories which are ordered and manufactured in anticipation of sales. As a result, our sales mix was composed of a smaller than usual proportion of sales at regular price points, adversely affecting the company's gross margin in fiscal 1993. Subsequent to year end, we successfully disposed of the bulk of prior season inventories; and the company's present inventory position consists principally of merchandise in our current lines.
 "The largest contribution to the increase in selling, general and administrative expenses last year came from expenditures which we made to increase and enhance our retail outlets. The company believes that this is an investment that will not only provide direct contributions to income but will also increase our ability to manage inventory without threatening our principal channels of distribution. These expenditures have already resulted in substantial sales increases for those stores since June 1993.
 "In addition to investing in our retail division, we have made other adjustments to marketing and operations that we believe will put us in a stronger position for the future. Specifically, we implemented programs to significantly reduce our operating expenses on a going forward basis. We have concentrated our department store marketing efforts on item classifications at retail, continued with our lower price points, and have put fewer styles in our line to better focus our market position.
 "While the effects of a sluggish economy are likely to be felt in the first part of the current year, initial trade reaction to the steps we have taken has been positive and I am optimistic that our moves will translate into markedly improved bottom line performance this year," Mrs. Chaus concluded.
 Bernard Chaus, Inc., is one of the largest producers of updated, moderately priced women's sportswear, sold in major department stores and specialty stores throughout the United States.
 Statement of Operating Data
 (Dollars in Thousands, Except per Share Data)
 ? For the Year Ended For the Quarter Ended
 June 30, June 30, June 30, June 30,
 1993 1992 1993 1992
 Net sales $235,819 $254,190 $54,659 $62,114
 Cost of goods sold 187,423 196,415 48,952 46,647
 Gross profit 48,396 57,775 5,707 15,467
 Selling, general and
 administrative expenses 57,410 50,016 15,013 12,798
 Total (9,014) 7,759 (9,306) 2,669
 Interest and other income 449 472 110 134
 Interest expense (2,322) (2,474) (733) (502)
 (Loss) income before
 provision for income
 taxes & extraordinary
 item (10,887) 5,757 (9,929) 2,301
 Provision (credit) for
 income taxes 102 2,245 -- 897
 (Loss) income before
 extraordinary item (10,989) 3,512 (9,929) 1,404
 Extraordinary item:
 Tax benefits from
 utilization of net
 operating loss
 carryforwards -- 1,957 -- 782
 Net (loss) income ($10,989) $5,469 ($9,929) $2,186
 Net (loss) income
 per share ($0.60) $0.30 ($0.54) $0.12
 Weighted Average
 Number of Common
 Shares Outstanding 18,272,123 18,363,245 18,352,688 18,811,793
 Selected Balance Sheet Data
 (Dollars in Thousands)
 June 30, June 30,
 1993 1992
 Cash and Cash Equivalents $ 1,367 $24,383
 Accounts Receivable, Net 30,562 33,301
 Inventory 45,974 19,877
 Working Capital 43,546 51,964
 Total Assets 90,208 86,489
 Total Liabilities 57,061 43,161
 Stockholders' Equity 33,147 43,328
 -0- 9/2/93
 /CONTACT: Anthony M. Pisano, chief financial officer of Bernard Chaus, Inc., 201-863-4646/

CO: Bernard Chaus, Inc. ST: New York IN: TEX SU: ERN

GK-TW -- NY066 -- 8507 09/02/93 15:11 EDT
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Publication:PR Newswire
Date:Sep 2, 1993

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