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FREDERICK'S OF HOLLYWOOD INC. ANNOUNCES RESULTS

 LOS ANGELES, Oct. 29 /PRNewswire/ -- Frederick's of Hollywood Inc. (NYSE: FOH.A, FOH.B) today reported operating results for the fiscal year and fourth quarter ended Aug. 28, 1993.
 Net earnings for the most recent 12-month period amounted to $4,737,000, equal to $.53 per share, compared with $5,073,000, or $.57 per share, for the same period last year. Sales for fiscal 1993 advanced to $128,516,000 from $117,030,000 a year ago.
 For the fourth quarter, net earnings were $1,028,000, equal to $.12 per share, compared with $1,376,000, or $.15 per share, last year. Sales rose to $29,118,000 from $28,296,000 in the corresponding quarter in fiscal 1992.
 George W. Townson, chairman and chief executive officer, said results for the year were impacted by the continued challenging retail environment, particularly in California, where 24 percent of the company's stores are located. He said operating profits for the store network declined 43 percent on a 3 percent net sales increase. Comparable store sales declined 1.9 percent overall and 7.5 percent in California. Remodeling costs, increased expenses from new stores, and lease renewals which were not offset by higher sales were primary factors impacting profitability. Five stores were opened, and seven were closed during the fiscal year.
 Operating profits for the mail order subsidiary increased 49 percent for the year, and sales advanced 21 percent. Townson attributed the favorable performance to a 24 percent increase in the number of catalogs mailed. He noted that more than 41 million catalogs were distributed during the year, compared with 33 million catalogs the prior year.
 "While the economy in California still shows no signs of recovery, management is taking steps to move the company forward," said Townson. "Included are programs already underway to test new merchandise, along with the development of new apparel designs. Fiscal 1994 will likely be another difficult year, but with a strong, debt-free balance sheet, Frederick's has the resources and foundation on which to build for the future," he added.
 Frederick's currently operates 206 specialty boutique stores in 39 states and a mail-order division serving customers in all 50 states.
 FREDERICK'S OF HOLLYWOOD INC. AND SUBSIDIARIES
 Consolidated Condensed Statement of Earnings
 Fiscal Year Ended Three Months Ended
 Aug. 28, Aug. 29, Aug. 28, Aug. 29,
 1993 1992 1993 1992
 Net sales $128,516,000 $117,030,000 $29,118,000 $28,296,000
 Earnings before
 income taxes 7,655,000 8,018,000 1,315,000 1,698,000
 Federal and state
 income taxes 2,918,000 2,945,000 287,000 322,000
 Net earnings 4,737,000 5,073,000 1,028,000 1,376,000
 Net earnings
 per share
 Class A $.53 $.57 $.12 $.15
 Class B $.53 $.57 $.12 $.15
 Weighted average
 number of shares
 outstanding(a)
 Class A 2,972,000 2,989,000 2,970,000 2,969,000
 Class B 5,943,000 5,979,000 5,939,000 5,938,000
 (a) Adjusted to reflect a recapitalization effective Oct. 15, 1993. The company effected a 1-for-3 reverse split of the capital stock, which was reclassified as Class A, with one vote per share. Each stockholder subsequently received a distribution of two shares of new non-voting Class B capital stock for each share owned of Class A capital stock.
 -0- 10/29/93
 /CONTACT: George W. Townson or John B. Hatfield of Frederick's of Hollywood, 213-466-5151; or Roger S. Pondel of Pondel Parsons & Wilkinson, 310-207-9300/
 (FOH)


CO: Frederick's of Hollywood Inc. ST: California IN: REA SU: ERN

JB-LS -- LA005 -- 8358 10/29/93 09:01 EDT
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Date:Oct 29, 1993
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