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DAMARK INTERNATIONAL, INC., REPORTS FIRST QUARTER SALES AND EARNINGS

 MINNEAPOLIS, April 19 /PRNewswire/ -- DAMARK International, Inc. (NASDAQ: DMRK) today reported results for its first quarter ended April 2, 1994. Net sales increased 38 percent to $114.0 million. This compares with $82.5 million for the same period in 1993. Net income increased 128 percent to $1.4 million from $610,000 last year. On a per share basis, net income grew 75 percent to 14 cents from 8 cents last year. Because of the secondary offering last fall, the current quarter includes a 27 percent increase in average shares outstanding. This year's results include the effects of the company's recent COMB acquisition.
 "We are pleased with these results," said Mark A. Cohn, chairman and chief executive officer. "During the quarter, we continued to strengthen the company by expanding club membership. To make membership more attractive, we raised service levels by expanding the discount and partnership programs we offer these customers. We added 135,000 new club members during the period to bring total club membership to 665,000 versus 325,000 a year ago. However, catalog productivity decreased during the period. Our total sales per catalog mailed dropped 10.1 percent over the prior year period, while circulation increased 50.4 percent. Productivity was diminished by the lower performance characteristics of the COMB customer lists and a change of promotional strategies in our front-end programs."
 Founded in 1986, DAMARK International, Inc., is a product-driven, information-based national direct merchandiser of brand name and other quality general merchandise. The company targets consumers with a weighting toward well-educated males with above-average income and offers "great deal" merchandise priced at or below dominant discount retailers. DAMARK's common stock trades on the NASDAQ National Market System under the symbol DMRK.
 DAMARK INTERNATIONAL, INC.
 STATEMENTS OF OPERATIONS
 (Dollar and share amounts in thousands except per share data)
 (Unaudited)
 Quarter ended
 4/2/94 4/3/93
 Net sales $113,975 $82,511
 Cost of sales 84,849 62,718
 Gross profit 29,126 19,793
 Selling, general and
 administrative expenses 26,936 18,652
 Operating income 2,190 1,141
 Interest expense, net 36 56
 Other expenses, net 12 160
 Income before income taxes 2,142 925
 Income tax expense 749 315
 Net income $1,393 $610
 Income per share and common share equivalents:
 Primary and fully diluted:
 Net income $.14 $.08
 Weighted average common shares and
 common share equivalents outstanding 10,183 8,029
 -0- 4/19/94
 /CONTACT: Jim Tuller of DAMARK, 612-531-0066/
 (DMRK)


CO: DAMARK International, Inc. ST: Minnesota IN: REA SU: ERN

CP-AL -- MN018 -- 7157 04/19/94 16:49 EDT
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Publication:PR Newswire
Date:Apr 19, 1994
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