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GANTOS, INC. REPORTS 2ND-QUARTER 1992 EARNINGS

 GANTOS, INC. REPORTS 2ND-QUARTER 1992 EARNINGS
 GRAND RAPIDS, Mich., Aug. 19 /PRNewsire/ -- Gantos, Inc.


(NASDAQ-NMS: GTOS) today reported net income for the second quarter ended Aug. 1, 1992 of $366,000, or $0.07 per share, compared to a net loss of $866,000, or $0.16 per share, for the same period a year ago. Sales were $62.8 million for the quarter, an increase of 7 percent over sales of $58.9 million in the prior year. Sales for stores open throughout both periods increased by 7 percent.
 Net income for the six months ended Aug. 1, 1992 was $507,000, or $0.09 per share, compared to a net loss of $2.5 million, or $0.48 per share, for the same period a year ago. As previously announced, the company discontinued its catalog operations during the first quarter of 1991. Excluding catalog sales, the company's year-to-date sales of $125.5 million increased 7 percent from 1991 sales of $117.7 million. Sales for stores opened throughout both periods rose 9 percent.
 L.D. Gantos, chief executive officer of the company, said, "We are pleased with the progress we have made against the company's goals to strengthen its financial position and improve sales while continuing to lower its cost structure. I am happy to report that we are succeeding on all fronts. This marks the fourth consecutive quarter of positive earnings and the third consecutive quarter of positive cash flow from operations and reduced debt levels."
 Michele Fortune, president and chief operating officer, added, "While previous successes have come through strong selling, general and administrative expense reductions, we are pleased to see improved sales and gross margin, an indication that our customer approves of our merchandising efforts. We remain confident of continued improvements despite a difficult retail environment."
 Gantos, Inc. is a leading specialty retailer of quality women's wear and accessories. The company currently operates 158 stores in 28 states.
 GANTOS, INC.
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (Amounts in thousands, except per-share and store data; unaudited)
 Second Quarter Ended Six Months Ended
 8/1/92 8/3/91 8/1/92 8/3/91
 Net sales $62,833 $58,889 $125,488 $119,347
 Cost of sales (including
 buying, distribution and
 occupancy costs) 50,169 48,669 100,365 96,876
 Gross income 12,664 10,220 25,123 22,471
 Selling, general and
 administrative expense 13,672 12,502 26,893 27,571
 Operating income (loss) (1,008) (2,282) (1,770) (5,100)
 Interest expense (727) (1,276) (1,684) (2,613)
 Finance charge and other
 revenue 2,276 2,204 4,204 3,803
 Income (loss) before
 income taxes 541 (1,354) 750 (3,910)
 Provision (credit) for
 income taxes 175 (488) 243 (1,408)
 Net income (loss) $366 ($866) $507 ($2,502)
 Net income (loss) per share $0.07 ($0.16) $0.09 ($0.48)
 Weighted average shares
 outstanding 5,434 5,256 5,434 5,256
 Stores open at end of period 158 163 158 163
 GANTOS, INC.
 CONDENSED CONSOLIDATED BALANCE SHEETS
 (Amounts in thousands; unaudited)
 8/1/92 8/3/91
 Assets
 Current assets:
 Cash $2,538 $1,326
 Accounts receivable (net) 40,284 37,420
 Merchandise inventories 30,442 34,971
 Prepaid expenses and other 4,813 6,976
 Total current assets 78,077 80,693
 Property and equipment (net) 40,330 49,991
 Total assets $118,407 $130,684
 Liabilities and shareholders' equity
 Current liabilities:
 Accounts payable and other $17,725 $16,203
 Accrued expenses and other 16,048 14,766
 Deferred income taxes 905 1,212
 Total current liabilities 34,678 32,181
 Long-term debt 41,064 56,444
 Other long-term liabilities --- 2,270
 Deferred taxes 1,886 2,682
 Shareholders' equity 40,779 37,107
 Total liabilities and
 shareholders' equity $118,407 $130,684
 -0- 8/19/92
 /CONTACT: J.E. Bunka, Gantos, Inc. controller, 616-940-9295/
 (GTOS) CO: Gantos, Inc. ST: Michigan IN: REA SU: ERN


DH-ML -- DE007 -- 1252 08/19/92 09:43 EDT
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Date:Aug 19, 1992
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