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CARTER HAWLEY HALE REPORTS FIRST QUARTER RESULTS

 LOS ANGELES, May 28 /PRNewswire/ -- Carter Hawley Hale Stores Inc. (NYSE: CHH) today reported a 5.2 percent comparable store sales increase for the first quarter but a slightly lower operating profit because of increased promotional activity.
 Total sales for the quarter were $442.5 million, a 2.0 percent increase over the $433.6 million reported in 1992. The prior year includes sales for four stores which were subsequently closed. Operating profit for the quarter was $5.0 million, down slightly from the $5.6 million reported last year. Last year's results included costs of $2.0 million attributable to the civil disturbances in Los Angeles during the quarter.
 This year's net loss was ($10.4 million) or ($0.29) per share. Last year's net loss of ($1.5 million) included a gain of $18.8 million because of a change in accounting for income taxes. The loss before this gain was ($20.4 million).
 "Business was highly promotional during the quarter which increased markdowns and lowered gross margins and overall profitability," said David L. Dworkin, who joined the company in late March as president and chief executive. "Results were also affected by the fact that this is an organization in transition with a new management team and a new strategic direction being put in place.
 "We are concentrating on focusing our merchandise assortments to increase sales per square foot, improving our store organization so that we better serve our customers, and reducing costs to compete more effectively," Dworkin added. "We are repositioning the organization for the second half of the year when we do the major portion of our business."
 Carter Hawley Hale Stores Inc. is one of leading operators of full-line department stores in the western United States with annual sales in excess of $2.1 billion. It operates 83 department stores under the names of The Broadway, Emporium and Weinstocks.
 CARTER HAWLEY HALE STORES INC.
 Consolidated Statement of Earnings
 (In thousands)
 (Unaudited)
 13 Weeks Ended
 May 1, 1993 May 2, 1992
 Sales $442,480 $433,627
 Finance charge revenue 21,228 22,558
 Cost of goods sold, including
 occupancy and buying costs 329,454 319,812
 Selling, general and
 administrative expenses 129,213 130,747
 Earnings from operations
 before interest expense and
 reorganization costs 5,041 5,626
 Interest expense, net 22,300 22,405
 Loss from operations before
 reorganization costs (17,259) (16,779)
 Reorganization costs --- 3,592
 Pretax loss (17,259) (20,371)
 Income tax benefit 6,900 ---
 Loss before cumulative effect
 of change in accounting (10,359) (20,371)
 Cumulative effect of change
 in accounting for income taxes --- 18,832
 Net loss ($10,359) ($1,539)
 Loss per common share ($0.29) (a)
 (a) Per share data for the prior-year period has been omitted since those amounts do no reflect the current capital structure.
 CARTER HAWLEY HALE STORES INC.
 Consolidated Balance Sheet
 (In thousands)
 (Unaudited)
 May 1, Jan. 30, May 2,
 1993 1993 1992
 Assets
 Current assets
 Cash $18,213 $18,617 $34,546
 Accounts receivable, net 518,884 579,794 534,472
 Merchandise inventories
 (FIFO basis) 418,233 465,819 451,603
 LIFO reserve 1,390 1,890 (80,767)
 Other current assets 18,837 12,913 24,658
 Total 975,557 1,079,033 964,512
 Property and equipment, net 786,730 788,129 503,422
 Other assets 43,276 45,740 96,854
 Total $1,805,563 $1,912,902 $1,564,788
 Liabilities and Shareholders' Equity
 Current liabilities
 Notes payable $112,200 $52,315 $57,000
 Current installments 7,070 7,070 2,866
 Accounts payable 114,892 172,159 120,951
 Accrued expenses 106,948 142,973 226,695
 Current income taxes 2,984 3,038 10,948
 Total 344,094 377,555 418,460
 Liabilities subject to settlement
 under reorganization proceedings --- --- 593,741
 Receivables-based financing 411,531 467,577 421,873
 Other long-term debt 517,492 515,658 453,174
 Capital lease obligations 46,818 47,558 54,530
 Other liabilities 115,676 117,343 133,025
 Deferred income taxes 5,550 12,450 ---
 Shareholders' equity
 Preferred stock, $.01 par value 11 11 ---
 Common stock, $.01 par value 352 352 303
 Other paid-in capital 351,678 351,678 643,194
 Accumulated earnings (deficit) 12,361 22,720 (1,153,512)
 Total 364,402 374,761 (510,015)
 Total $1,805,563 $1,912,902 $1,564,788
 CARTER HAWLEY HALE STORES INC.
 Consolidated Statement of Cash Flows
 (In thousands)
 (Unaudited)
 13 Weeks Ended
 May 1, 1993 May 2, 1992
 Operating Activities
 Loss from operations ($10,359) ($20,371)
 Adjustments to reconcile loss
 from operations to net
 operating cash flows
 Depreciation and amortization 8,335 10,157
 Deferred taxes (6,900) ---
 Changes in operating assets
 and liabilities
 Customer receivables, net 59,110 77,062
 Merchandise inventories 48,086 13,610
 Accounts payable and
 accrued liabilities (85,267) (32,834)
 Other, net (5,405) (490)
 Net cash provided by
 operating activities 7,600 47,134
 Investing activities
 Purchases of property and
 equipment (9,998) (1,998)
 Financing activities
 Postemergence debt activity
 Net change in financing under
 receivables-based facility (56,046) ---
 Net change in financing under
 working capital facility 59,885 ---
 Postpetition debt activity
 Net change in financing under
 receivables-based facility --- (67,381)
 Net change in financing under
 working capital facility --- 20,000
 Retirements of long-term debt
 and capital lease obligations (1,845) (725)
 Net cash provided (used) by
 financing activities 1,994 (48,106)
 Net decrease in cash (404) (2,970)
 Cash at the beginning of the period 18,617 37,516
 Cash at the end of the period $18,213 $34,546
 -0- 5/28/93
 /CONTACT: Bill Dombrowski, VP-public affairs of Carter Hawley Hale Stores, 213-227-3884/
 (CHH)


CO: Carter Hawley Hale Stores Inc. ST: California IN: REA SU: ERN

LS-JL -- LA006 -- 3265 05/28/93 08:31 EDT
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Date:May 28, 1993
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