HARTMARX FOURTH QUARTER AND YEAR END RESULTS
HARTMARX FOURTH QUARTER AND YEAR END RESULTS CHICAGO, Jan. 23 /PRNewswire/ -- Hartmarx Corp. (NYSE: HMX) today
reported operating results for the fourth quarter and year ended Nov. 30. The company also announced that it would not pay a quarterly dividend in February.
Sales for the quarter were $318,914,000 and $1,215,310,000 for the year compared to the prior year's $336,399,000 and $1,295,840,000, respectively. The loss was $15,125,000 or $.60 per share for the fourth quarter and $38,365,000 or $1.74 per share for the year. Both 1991 periods include a $9 million or $.40 per share after tax provision for costs associated with the consolidation of administrative functions of Hartmarx Specialty Stores and Kuppenheimer as part of the recently announced formation of the Hartmarx Retail Group. Last year's loss was $3,955,000 or $.19 per share for the quarter and $61,545,000 or $3.11 per share for the year, which included an after tax restructuring charge of $51,000,000 or $2.59 per share. Harvey A. Weinberg, chairman and chief executive officer of Hartmarx stated, "While the company's recent financial performance has been disappointing, we have taken actions to strengthen Hartmarx as the recession ends. We intend to focus on our very profitable core wholesale businesses and expand Kuppenheimer's successful value concept through its association with Sears. We will continue to downsize Hartmarx Specialty Stores and Country Miss' retail operations. "Sales declined $80 million or 6 percent during fiscal 1991, all in the retail segment from fewer stores and lower sales in comparable store locations. The loss for the quarter and year was in the retail segment reflecting lower sales, continuing pressure on gross margins and the provision for costs associated with the formation of the Hartmarx Retail Group. Retail segment expense levels were reduced in fiscal 1991 despite the one-time provision, but the ratio to sales and operating earnings for the quarter and year were approximately equal to last year's results. Although below the record levels set in 1989, sales and earnings in the company's core men's apparel businesses have held up very well during the recession. "Combining administrative functions through the Hartmarx Retail Group will further reduce segment expenses. These actions are expected to result in annualized savings in excess of the $14 million pre-tax consolidation provision. These savings are in addition to the $20 million pre-tax annualized savings from expense reductions announced in September from store closings and administrative expense eliminations. "This difficult economic period requires bold actions that will enhance the long-term prospects of the company. We are proud to have paid dividends each year since 1939, but our priority is to strengthen our balance sheet. Paying a dividend at this time is inconsistent with this goal, even though we believe our plans will result in dramatic improvement in our financial performance. We are planning 1992 capital expenditures $16 million below depreciation expense and are implementing an aggressive inventory reduction program. These actions, along with a $17 million income tax refund, are expected to significantly reduce debt during fiscal 1992." Hartmarx, headquartered in Chicago, is the nation's leading manufacturer and retailer of quality men's and women's apparel. HARTMARX CORP. Period ended Fourth quarter Nov. 30 1991 1990 Net sales $ 318,914,000 $ 336,399,000 Loss before taxes (22,515,000) (6,680,000) Tax benefit (7,390,000) (2,725,000) Net loss (15,125,000) (3,955,000) Loss per share (.60) (.19) Period ended Year Nov. 30 1991 1990 Net sales $1,215,310,000 $1,295,840,000 Loss before taxes (59,995,000) (94,810,000) Tax benefit (21,630,000) (33,265,000) Net loss (38,365,000) (61,545,000)(A) Loss per share (1.74) (3.11)(A) Average common shares and equivalents outstanding 22,056,000 19,786,000 (A) 1990 includes $51,000,000 or $2.59 per share after tax restructuring charge. -0- 1/23/92 /CONTACT: Patricia Plodzeen of Hartmarx, 312-372-6300/ (HMX) CO: Hartmarx Corp. ST: Illinois IN: TEX SU: ERN SH -- NY074 -- 2875 01/23/92 14:11 EST
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|Date:||Jan 23, 1992|
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