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FREDERICK'S OF HOLLYWOOD REPORTS EARNINGS

 LOS ANGELES, Jan. 6 /PRNewswire/ -- Fredericks's of Hollywood Inc. (NYSE: FHO) today reported a slight increase in earnings on a 16 percent sales gain for the first fiscal quarter ended Nov. 28, 1992.
 Net earnings for the three-month period rose to $515,000, equal to $.06 per share, from $509,000, also equal to $.06 per share, a year ago. Sales advanced to $29,761,000, from $25,673,000 for last year's first quarter.
 George W. Townson, chairman and chief executive officer, said earnings for the most recent first quarter reflected contributions from the company's mail order subsidiary, which had a strong performance for the period. Results were restrained by the retail store network, which registered an operating loss, primarily because of soft sales, higher occupancy expenses from 14 additional stores in operation and the increased cost of lease renewals.
 For the first quarter, Townson said the stores registered a net operating loss of $633,000, compared with operating profits of $70,000 last year. Sales rose 8.5 percent to $16,896,000 from $15,570,000, but the increase was not sufficient to offset the higher expenses. Comparable store sales for the period rose 2.1 percent, despite a 5.2 percent decline in comparable store sales from the California units.
 The mail order subsidiary posted a 92 percent increase in operating profits to $1,553,000 from $809,000 a year ago. Sales rose 27 percent to $12,865,000 from $10,103,000. The improvements were attributable to more catalogs distributed, along with increased productivity and lower advertising expenses per catalog.
 "As we move further into the fiscal year, our retail stores, particularly in California, continue to face challenges posed by the economic environment," said Townson. "The company remains financially sound, with no long-term debt, and we are continuing to closely monitor inventories and all expenses."
 At the close of the first quarter, Frederick's operated 211 specialty 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
 (Unaudited)
 Three months ended
 Nov. 28, Nov. 30,
 1992 1991
 Net sales $29,761,000 $25,673,000
 Earnings before income
 taxes $880,000 $870,000
 Federal and state income
 taxes $365,000 $361,000
 Net earnings $515,000 $509,000
 Net earnings per share
 Primary $.06 $.06
 Fully diluted $.06 $.06
 Weighted average number of
 shares outstanding
 Primary 8,903,000 9,030,000
 Fully diluted 8,948,000 9,030,000
 -0- 1/6/93
 /CONTACT: George W. Townson, chairman and CEO, or John B. Hatfield of Frederick's of Hollywood, 213-466-5151; or Roger S. Pondel of Pondel Parsons & Wilkinson, 310-207-9300, for Frederick's of Hollywood/
 (FHO)


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

BP-JB -- LA002 -- 2156 01/06/93 11:30 EST
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Publication:PR Newswire
Date:Jan 6, 1993
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