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FABRI-CENTERS ANNOUNCES FISCAL 1994

 HUDSON, Ohio, Aug. 17 /PRNewswire/ -- Fabri-Centers of America, Inc. (NYSE: FCA), today announced improved operating results for the second quarter ended July 31, 1993, typically the company's weakest period of the year. The net loss for the quarter was $5,433,000, or $.59 per share, compared to a net loss of $8,265,000, or $.84 per share, for the same period a year ago. Improved operating results for the quarter were primarily the result of positive trends in gross profit and expense control. The net loss for the first six months of $6,718,000, or $.72 per share, compares to a net loss of $6,347,000, or $.65 per share, a year ago. Fiscal 1993 results included a $2,000,000 pre-tax restructuring charge taken in the second quarter a year ago.
 The company reported net sales of $113,151,000 for the second quarter, up 3.1 percent from $109,751,000 in the same period a year ago. For the six months ended July 31, 1993, net sales were $252,902,000, up 7.4 percent from $235,562,000 in the same period a year ago. Comparable- store sales were down 4.5 percent for the second quarter and down 2.5 percent for the first half of the fiscal year against the same periods in the prior year.
 Excess capacity in the fabric retailing industry has led to a prolonged period of aggressive pricing and a very difficult retailing environment. The company's promotional activities were revised in the second quarter in order to achieve a better balance between sales growth and gross profit. Controlled sales promotions, continued expense control, better store-level operations, and improved customer service should allow operating results to continue on a favorable trend during the seasonally stronger second half of the year.
 For the year, the company plans to open 20 to 25 new superstores and close 50 to 60 smaller units. This represents a significant decline from a year ago, when 171 new superstores were added and 142 smaller units were closed. For the first six months of fiscal 1994, 11 new superstores were opened while 32 smaller units were closed.
 The company operates 672 retail fabric stores in 36 states primarily under the name Jo-Ann Fabrics which offer customers a broad assortment of fashion and decorator fabrics, crafts, notions, seasonal and other merchandise.
 FABRI-CENTERS OF AMERICA, INC.
 Summary of Sales and Earnings (UNAUDITED)
 (Thousands of dollars, except share and per share data)
 Thirteen Weeks Ended
 July 31, Aug. 1,
 1993 1992
 Net Sales $113,151 $109,751
 Loss from continuing
 operations, net of taxes (5,433) (7,804)
 Loss from discontinued
 operations, net of taxes --- (461)
 Net Loss $ (5,433) $ (8,265)
 Loss per common share:
 Loss from continuing
 operations $ (0.59) $ (0.79)
 Discontinued operations --- (0.05)
 Net loss $ (0.59) $ (0.84)
 Average shares and equivalents
 outstanding 9,215,028 9,830,657
 Twenty-Six Weeks Ended
 July 31, Aug. 1,
 1993 1992
 Net Sales $252,902 $235,562
 Loss from continuing
 operations, net of taxes (7,117) (5,356)
 Loss from discontinued
 operations, net of taxes --- (991)
 Loss before cumulative effect
 of accounting change (7,117) (6,347)
 Cumulative effect as of
 Jan. 30, 1993, of change in
 method of accounting for
 income taxes -- Note A 399 ---
 Net Loss $ (6,718) $ (6,347)
 Loss per common share:
 Loss from continuing
 operations $ (0.76) $ (0.55)
 Discontinued operations --- (0.10)
 Cumulative effect of
 accounting change 0.04 ---
 Net loss $ (0.72) $ (0.65)
 Average shares and equivalents
 outstanding 9,291,544 9,795,597
 Note A -- Change in Method of Accounting for Income Taxes.
 Effective Jan. 31, 1993, the company adopted FASB Statement No. 109, "Accounting for Income Taxes." As permitted by Statement 109, the company has elected not to restate the financial statements for any prior years. The effect of the change on pre-tax income from continuing operations for the 13 weeks and 26 weeks ended July 31, 1993, was not material; however the cumulative effect of the change decreased the net loss by $399,000, or $0.04 per share for the 26 weeks ended July 31, 1993.
 -0- 8/17/93
 /CONTACT: Robert Norton or Alan Rosskamm, 216-656-2600, both of Fabri-Centers of America, Inc./
 (FCA)


CO: Fabri-Centers of America, Inc. ST: Ohio IN: REA SU: ERN

BM -- CL015 -- 3603 08/17/93 13:54 EDT
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Publication:PR Newswire
Date:Aug 17, 1993
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