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GANTOS, INC. REPORTS 2ND-QUARTER 1993 RESULTS

/Repeat to correct garble in third paragraph of original transmission/
 GRAND RAPIDS, Mich., Aug. 18 /PRNewswire/ -- Consistent with its earlier announcement, Gantos, Inc. (NASDAQ: GTOS) today reported a net loss for the second quarter ended July 31, 1993, of $8,028,000, or $1.50 per share, compared to net income of $366,000, or $0.07 per share, for the same period a year ago. Sales were $57.0 million for the quarter, a decrease of 9 percent from sales of $62.8 million in the prior year. Sales for stores open throughout both periods decreased 9 percent.
 The net loss for the six months ended July 31, 1993, was $7,916,000, or $1.48 per share, compared to net income of $507,000, or $0.09 per share, for the same period a year ago. 1993 net income reflects the positive cumulative effect of adopting SFAS No. 109. The company's year-to-date sales were $116.2 million, a decrease of 7 percent from 1992 sales of $125.5 million. Sales for stores open throughout both periods decreased 7 percent.
 L.D. Gantos, chief executive officer of the company, said that "while we are of course disappointed with our performance over the past six months, we believe that the abnormally high markdowns that were required to clear slow-selling spring and summer merchandise are behind us, and we are cautiously optimistic about the fall and holiday season."
 Gantos, Inc. is a leading specialty retailer of quality women's wear and accessories. The company currently operates 158 stores in 25 states.
 GANTOS, INC.
 CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Loss)
 (Amounts in thousands, except per-share and store data; unaudited)
 Second Quarter Ended Six Months Ended
 July 31, Aug. 1, July 31, Aug. 1,
 1993 1992 1993 1992
 Net sales $56,990 $62,833 $116,209 $125,488
 Cost of sales
 (including buying,
 distribution and
 occupancy costs) (57,254) (50,169) (106,639) (100,365)
 Gross income (loss) (264) 12,664 9,570 25,123
 Selling, general and
 administrative
 expense (12,722) (13,672) (25,335) (26,893)
 Finance charge and
 other revenue 1,557 2,276 3,167 4,204
 Operating income
 (loss) (11,429) 1,268 (12,598) 2,434
 Interest expense (490) (727) (974) (1,684)
 Income (loss) before
 income taxes and
 cumulative effect of
 accounting change (11,919) 541 (13,572) 750
 (Provision) benefit
 for income taxes 3,891 (175) 4,479 (243)
 Net income (loss) before
 cumulative effect of
 accounting change (8,028) 366 (9,093) 507
 Cumulative effect of
 accounting change 0 0 1,177 0
 Net income (loss) ($8,028) $366 ($7,916) $507
 Per-share amounts:
 Net income (loss) before
 cumulative effect of
 accounting change ($1.50) $0.07 ($1.70) $0.09
 Cumulative effect of
 accounting change 0.00 0.00 0.22 0.00
 Net income (loss)
 per share ($1.50) $0.07 ($1.48) $0.09
 Weighted average
 shares outstanding 5,346 5,434 5,346 5,429
 Stores open at end
 of period 157 158 157 158
 GANTOS, INC.
 CONDENSED CONSOLIDATED BALANCE SHEETS
 (Amounts in thousands; unaudited)
 Second Quarter Ended
 July 31, Aug. 1,
 1993 1992
 ASSETS
 Current assets:
 Cash $1,663 $2,538
 Accounts receivable (net) 31,218 40,284
 Merchandise inventories 26,498 30,442
 Prepaid expenses and other 5,112 4,813
 Income tax receivable 2,131 ---
 Deferred income taxes 1,384 ---
 Total current assets 68,006 78,077
 Property and equipment (net) 32,473 40,330
 Total assets $100,479 $118,407
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities:
 Accounts payable $12,542 $17,725
 Accrued expenses and other 17,467 16,048
 Deferred income taxes 434 905
 Total current liabilities 30,443 34,678
 Long-term debt 31,925 41,064
 Deferred taxes 368 1,886
 Shareholders' equity 37,743 40,779
 Total liabilities and
 shareholders' equity $100,479 $118,407
 -0- 8/18/93
 /CONTACT: Wayne J. Hutnick, vice president/CFO of Gantos, 616-940-9207/
 (GTOS)


CO: Gantos, Inc. ST: Michigan IN: REA SU: ERN

ML-DD -- DE007A -- 3811 08/18/93 09:48 EDT
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Date:Aug 18, 1993
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