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 CHICAGO, Oct. 4 /PRNewswire/ -- Hartmarx Corp. (NYSE: HMX) today announced a return to profitability for the third quarter of 1993. For the quarter ended Aug. 31, 1993, Hartmarx continued its turnaround momentum, achieving earnings of $1.9 million.
 Elbert O. Hand, chairman and chief executive officer of Hartmarx, commented, "The process of restructuring Hartmarx is progressing through 1993 following the actions taken in the second half of 1992 to dispose of non-performing and non-strategic businesses and to focus the company's activities on the growth of its manufacturing/marketing entities."
 Third quarter pre-tax earnings were $1.9 million on consolidated revenues of $189.0 million. Results include $.5 million income from the reduction of inventory maintained on a LIFO-cost basis. Losses sustained in the first six months resulted in a pre-tax loss of $2.8 million for the nine months on sales of $547.8 million. As a tax benefit was not recognized, the net and pre-tax results were the same. Net earnings per share were $.06 in the third quarter and the net loss was $.09 per share for the nine months.
 Results for 1992 included third quarter restructuring charges of $190.8 million primarily related to the disposition of the company's principal retail operation, Hartmarx Specialty Store, Inc., the liquidation of the company's principal retail operation, Hartmarx Specialty Stores, Inc., the liquidation of the Old Mill store group formerly operated by Country Miss, and closing various production facilities supporting retail operations. Including this charge, the pre-tax loss was $213.6 million for the third quarter and $232.5 million for the nine months of 1992. A tax benefit of $6.6 million reduced the 1992 net loss to $225.9 million or $8.84 per share for the nine months. The loss per share in the third quarter was $8.30. Sale in 1992 were $264.1 million in the third quarter and $842.4 million for the nine months, which included the revenues of the Specialty Stores and the Old Mill stores.
 Hand further stated, "Considering a retail climate driven by low consumer confidence, our steady improvements in operations are positive. The Men's Apparel Group, presently consisting of Hart Schaffner & Marx, Intercontinental Branded Apparel, Trans-Apparel Group, Biltwell, Hickey- Freeman and Bobby Jones, had significant increases in third quarter earnings before interest and taxes. Our Barrie Pace, Ltd., catalog maintained its strong performance in sales and profits. The start-up efforts at the new International Women's Apparel remain focused on achieving profitability and establishing their branded products in a difficult womenswear marketplace. Kuppenheimer comparable store sales were ahead for the quarter and its loss narrowed.
 "As we enter the final quarter of 1993, prospects for 1994 indicate further improvement with Spring 1994 advance orders ahead for our major brands. Next month our new Tommy Hilfiger tailored clothing and slack lines commence sales for Fall 1994. Forward order for our Jack Nicklaus and Bobby Jones sportwear lines are expanding. Additionally, inventory and debt reduction accomplishments have exceeded plan during each quarter of 1993."
 Hartmarx, headquartered in Chicago, is the nation's leading manufacturer and wholesaler of men's and women's apparel.
 Three Months Ended Aug. 31, 1993 1992
 Net sales $188,993,000 $264,065,000
 Earnings (loss) before taxes 1,910,000 (213,605,000)
 Tax benefit -- --
 Net earnings (loss) 1,910,000 (213,605,000)(A)
 Earnings (loss) per share .06 (B) (8.30)
 Average common shares and
 equivalents outstanding 31,835,000 25,723,000
 Nine Months Ended Aug. 31, 1993 1992
 Net sales $547,831,000 $842,389,000
 Loss before taxes (2,805,000) (232,475,000)
 Tax benefit -- (6,605,000)
 Net loss (2,805,000) (225,870,000)(A)
 Loss per share (.09) (B) (8.84)
 Average common shares and
 equivalents outstanding 31,140,000 25,557,000
 (A) 1992 results include $190.8 million restructuring charge.
 (B) 1993 results reflect 5.7 million shares issued in connection with the company's Dec. 30, 1992 equity sale.
 -0- 10/4/93
 /CONTACT: Frank Brenner of Hartmarx, 312-357-5111/

CO: Hartmarx Corp. ST: Illinois IN: TEX SU: ERN

SH -- NY040 -- 8242 10/04/93 10:06 EDT
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Publication:PR Newswire
Date:Oct 4, 1993

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