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BRAUNS FASHIONS CORPORATION REPORTS SECOND QUARTER RESULTS

 MINNEAPOLIS, Sept. 16 /PRNewswire/ -- Brauns Fashions Corporation (NASDAQ-NMS: BFCI) today announced sales for the second quarter, ended Aug. 28, 1993, of $21,209,000, an increase of 12 percent over $18,991,000 for the same period last year. Same store sales decreased 1 percent. Net income for the second quarter was $106,000 or $.03 per share. This compares to earnings of $367,000 or $.10 per share for the same quarter last year.
 Net sales for the six months ended Aug. 28, 1993 were $42,209,000, an increase of 15 percent over $36,759,000 for the same period last year. Same store sales were unchanged from the same period last year. Net income for the first six months, before the cumulative effect of an adjustment relating to a change in accounting for income taxes, Statement of Financial Accounting Standards No. 109 (SFAS No. 109), was $812,000 compared to $913,000 for the first six months of last year. Earnings per share (EPS) before the accounting change were $.21 compared with $.26 last year. EPS were impacted by the dilution of shares as a result of the company's March, 1992 initial public offering and the required inclusion of outstanding warrants and options in the EPS calculation. The net effect of this dilution was $.02 per share for the first six months.
 The company's net earnings were increased by $1,100,000 or $.27 per share due to the one-time accounting adjustment resulting from the adoption of SFAS No. 109 in the first quarter. Net income after the accounting change for the six months ended Aug. 28, 1993 was $1,912,000 or $.48 per share.
 Nicholas H. Cook, chief executive officer of Brauns, said, "Weak consumer confidence and a continued sluggish economy compounded by unseasonably cold and wet weather, and flooding in the Midwest adversely affected our sales and earnings during the second quarter.
 "These economic and weather conditions created a highly promotional selling environment, which in turn required higher-than-normal markdowns to move spring and summer goods. We expect a highly promotional environment to continue in the near term, but we are committed to offering out customer exceptional value while protecting gross margins. We are encouraged by the acceptance of our fall offerings.
 "Our new store expansion program is on schedule. We opened eight new stores during the second quarter and we plan to open a minimum of six additional new stores before Christmas. We are pleased with the performance of the 21 new stores opened this year."
 Brauns Fashions Corporation, based in Minneapolis, is a regional retailer of women's fashions that currently operates 179 stores in 18 states, primarily in the Midwest and Pacific Northwest. The company's common stock trades on the NASDAQ National Market System under the symbol BFCI.
 BRAUNS FASHIONS CORPORATION
 FINANCIAL HIGHLIGHTS
 (Dollars in thousands, except per share amounts)
 (Unaudited)
 Three Months Ended
 8/28/93 8/29/92
 Net sales $21,209 $18,991
 Net income $106 $367
 Net income per common share(a) $.03 $.10
 Three Months Ended
 8/28/93 Pct of 8/29/92 Pct of
 Sales Sales
 Net sales $21,209 100.0 $18,991 100.0
 Cost of sales 15,243 71.9 13,468 70.9
 Gross profit 5,966 28.1 5,523 29.1
 Selling, general & administrative 5,149 24.3 4,387 23.1
 Depreciation & amortization 578 2.7 507 2.7
 Operating income 239 1.1 629 3.3
 Interest expense 67 0.3 38 0.2
 Income before income taxes 172 0.8 591 3.1
 Provision for income taxes 66 0.3 224 1.2
 Net income $106 0.5 $367 1.9
 Net income per common share(a) $.03 -- $.10 --
 (a) Based on the weighted average number of outstanding shares of common stock and common stock equivalents of 3,892,893 for the period ended Aug. 28, 1993 and 3,768,792 for the period ended Aug. 29, 1992.
 BRAUNS FASHIONS CORPORATION
 FINANCIAL HIGHLIGHTS
 (Dollars in thousands, except per share amounts)
 (Unaudited)
 Six Months Ended
 8/28/93 8/29/92
 Net sales $42,209 $36,759
 Net income before cumulative effect
 of change in accounting principle 812 913
 Cumulative effect of change in
 accounting principle (adoption
 of SFAS No. 109) 1,100 --
 Net income $1,912 $913
 Per common share(b)
 Before accounting change $.21 $.26
 Accounting change .27 --
 Net income per common share $.48 $.26
 Six Months Ended
 8/28/93 Pct of 8/29/92 Pct of
 Sales Sales
 Net sales $42,209 100.0 $36,759 100.0
 Cost of sales 29,288 69.4 25,568 69.6
 Gross profit 12,921 30.6 11,191 30.4
 Selling, general & administrative 10,334 24.5 8,591 23.4
 Depreciation & amortization 1,138 2.7 1,003 2.7
 Operating income 1,449 3.4 1,597 4.3
 Interest expense 138 0.3 125 0.3
 Income before income taxes 1,311 3.1 1,472 4.0
 Provision for income taxes 499 1.2 559 1.5
 Net income before cumulative effect
 of change in accounting principle 812 1.9 913 2.5
 Cumulative effect of change in
 accounting principle (adoption
 of SFAS No. 109) 1,100 2.6 -- --
 Net income $1,912 4.5 $913 2.5
 Per common share(b)
 Before accounting change $.21 -- $.26 --
 Accounting change .27 -- -- --
 Net income per common share $.48 -- $.26 --
 (b) Based on the weighted average number of outstanding shares of common stock and common stock equivalents of 3,940,875 for the period ended Aug. 28, 1993 and 3,560,459 for the period ended Aug. 29, 1992.
 -0- 9/16/93
 /CONTACT: Rosemary Wolf of Brauns, 612-828-8100/
 (BFCI)


CO: Brauns Fashions Corporation ST: Minnesota IN: REA SU: ERN

KH-xx -- MN013 -- 2832 09/16/93 16:46 EDT
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Date:Sep 16, 1993
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