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MOTHERS WORK, INC. ANNOUNCES SECOND QUARTER RESULTS

 PHILADELPHIA, April 30 /PRNewswire/ -- Mothers Work, Inc. (NASDAQ: MWRK) today announced results for its second quarter ended March 31, 1993, the first quarter completed since its initial public offering on March 16.
 Sales in the quarter were $6.9 million, an increase of 65 percent over sales of $4.2 million in the same quarter of the preceding year. Same-store sales increased 2.3 percent on a 90-day to 90-day comparison or 0.9 percent on a calendar basis (since 1992 was a leap year, there were 91 days in last year's quarter vs. 90 days this year). The company opened five stores in the quarter, ending with 67 company-owned stores open compared to 44 at March 31, 1992. While the company had a net loss of $152,000 for the quarter, supplemental pro forma net income for the second quarter, which excludes the non-recurring and extraordinary items resulting from the public offering, was $132,000, or $0.05 per share, compared to $97,000, or $0.04 per share, in the prior year quarter.
 Sales for the first six months were $13.7 million, an increase of 61 percent over the same period last year. Same store sales increased 5.8 percent in the first six months. Supplemental pro forma net income was $407,000, a 65 percent increase over last year's $247,000.
 Sales in the quarter were adversely impacted by the mid-March snowstorm, which affected a significant number of the company's stores for several days. Nevertheless, the acquisition or opening of 24 stores since last year's second quarter and a modest increase in same-store sales resulted in record sales for a quarter.
 The gross margin increased slightly to 50.5 percent from 50.3 percent in last year's second quarter. The increase was less than expected due to prolonged sales of fall mark-down merchandise due to harsh winter weather. Selling, general & administrative expenses increased $1.3 million compared to last year's second quarter and increased to 47.4 percent of sales compared to 46.8 percent in the prior year comparable period because of the opening of 20 new stores since the prior years second quarter, the addition of field management staff and other home office personnel to support the company's planned growth, and the repurchase since last year's second quarter of several large franchise territories and associated stores. Sales to these franchisees last year were reflected as wholesale sales without any associated store expenses. The increase in selling, general and administrative expenses as a percentage of sales also reflects the loss of sales to snow days with little reduction in operating costs during those days.
 In the second quarter of 1993 the company incurred certain one-time charges resulting from the prepayment or conversion of certain of its borrowings. A charge of $87,000 is included in interest expense, and another $126,000 of expenses net of income taxes are reflected in the income statement as an extraordinary charge. Supplemental pro forma net income per share assumes the elimination at the beginning of the quarter of the debt repaid out of proceeds of the offering and assumes that a sufficient number of new shares of stock were issued at the public offering price necessary to fund that debt repayment.
 Mothers Work is a leading specialty retailer of upscale maternity clothing. It currently has 72 stores located primarily in upscale regional malls across the country, and it manufactures most of its full range of career, casual and special occasion maternity wear at its Philadelphia headquarters. The company operates two store formats, Mothers Work (58 stores) and Mimi Maternity (14 stores).
 MOTHERS WORK, INC. AND SUBSIDIARIES
 Consolidated Statements of Income
 (Unaudited; in thousands except per-share amounts)
 Periods ended Three Months Six Months
 March 31 1993 1992 1993 1992
 Net Sales $6,902 $4,189 $13,732 $8,548
 Cost of Goods Sold 3,416 2,080 6,664 4,361
 Gross Profit 3,486 2,109 7,068 4,187
 SG&A Expenses 3,269 1,961 6,411 3,810
 Operating Income 217 148 657 377
 Interest Expense 121 127 245 263
 Non-Recurring
 Inducement Charge 87 --- 87 ---
 Income Before Taxes and
 Extraordinary Items 9 21 325 114
 Income Taxes 35 7 147 37
 Net Income (Loss) Before
 Extraordinary Items (26) 14 178 77
 Extraordinary Items,
 Net of Taxes (126) --- (126) ---
 Net Income (Loss) ($152) $ 14 $ 52 $ 77
 Supplemental Pro Forma
 Net Income (See Note) $ 132 $ 97 $ 407 $ 247
 Supplemental Pro Forma
 Net Income Per Share $ 0.05 $ 0.04 $ 0.16 $0.10
 Supplemental Pro Forma
 Avg. Shares Outstanding 2,590 2,482 2,534 2,458
 Note: Supplemental pro forma net income excludes the non-recurring and extraordinary items.
 SELECTED BALANCE SHEET DATA
 March 31, 1993 Sept. 30, 1992
 Assets:
 Cash and Marketable Securities $6,917 $ 469
 Inventories 5,838 5,324
 Total Current Assets $13,605 $ 6,475
 Total Assets $20,877 $12,406
 Liabilities and Stockholders' Equity:
 Total Current Liabilities $ 3,063 $ 3,848
 Redeemable Preferred Stock --- 4,929
 Stockholders' Equity 17,014 316
 Total Liabilities & Equity $20,877 $12,406
 /delval/
 -0- 4/30/93
 /CONTACT: Rebecca Matthias of Mothers Work, 215-625-9259/
 (MWRK)


CO: Mothers Work, Inc. ST: Pennsylvania IN: REA SU: ERN

MP-LJ -- PH005 -- 3063 04/30/93 09:23 EDT
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Date:Apr 30, 1993
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