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 NEW YORK, N.Y., Aug. 18 /PRNewswire/ -- Sam & Libby, Inc. (NASDAQ: SAML) announced results for the second quarter of fiscal 1993, ended July 3, 1993.
 For the 13 weeks ended July 3, 1993, the company incurred a loss from operations of $2.8 million and a loss from discontinued operations of $300,000. Special charges taken during the quarter increased the net loss to $8.6 million or $0.85 per share compared with a loss of $450,000 or $0.04 per share for the second quarter of 1992. These special charges included a $1.4 million charge for the reversal of a tax benefit and a $4.1 million charge for the settlement of a securities class action lawsuit which was brought against the company in April 1992. The company's portion of the total $8.25 million class action settlement fund will consist of cash in the amount of approximately $2.1 million and shares of the company's common stock with a value of $2 million. The company has reached an agreement in principle to settle the lawsuit. The settlement is subject to the execution of a definitive settlement agreement and approval by the court.
 Revenues for the first half of 1993 were $19.6 million compared with $40.7 million for the comparable period in 1992. The company's loss for the first half of 1993 was $9.9 million compared with earnings of $2.5 million for the first half of 1992. In addition to the $5.5 million of special charges taken in the second quarter, results for the first half of 1993 were reduced by a $1.5 million special charge to cover the relocation of the company's corporate headquarters from San Carlos, Calif. to New York City.
 "We have reduced our operating expenses from last year by 30 percent on an annualized basis and we are operating as a smaller, more focused company, with a motivated sales force and strengthened management team," said Sam Edelman, chairman and CEO. "The commitment to develop a full line of fashion-forward footwear is showing results, and we are encouraged by the positive response from some of our largest customers. In addition to strengthening our management team, we have moved back to a commissioned sales force, which we believe will improve our sales performance. Finally, the relocation of company headquarters to New York City has already resulted in closer relationships with our key accounts. Overall, the Sam & Libby name continues to be synonymous with premier designer junior shoes."
 Sam & Libby, Inc. designs, develops and distributes women's and children's footwear. The company markets its footwear to consumers who desire contemporary, fashionable products at affordable prices. This footwear is offered primarily through better department and specialty retail stores across the United States.
 Condensed Consolidated Statements of Operations
 (In thousands except per share data - Unaudited)
 Periods ended 13 Weeks Three Months 26 Weeks Six Months
 7/3/93 6/30/92 7/3/93 6/30/92
 Net revenue $9,571 $14,264 $19,580 $40,713
 Cost of sales 7,912 9,735 15,147 26,042
 Gross profit 1,659 4,529 4,433 14,671
 Selling, general
 and administrative
 expense 4,492 5,130 7,656 10,462
 Shareholder lawsuit
 settlement 4,100 -- 4,100 --
 Corporate office
 relocation expense -- -- 1,500 --
 Operating income
 (loss) (6,933) (601) (8,823) 4,209
 Interest income
 (expense) (4) 4 6 14
 Income (loss) from
 continuing operations
 before income
 taxes (6,937) (597) (8,817) 4,223
 Provision (benefit)
 for income taxes 1,366 (110) 708 1,818
 Net income (loss)
 from continuing
 operations (8,303) (487) (9,525) 2,405
 Net income (loss)
 from discontinued
 operations less
 applicable tax
 effect (297) 35 (382) 138
 Net income (loss) ($8,600) ($452) ($9,907) $2,543
 Net income (loss)
 per share from
 operations ($0.82) ($0.05) ($0.94) $0.24
 Net income (loss)
 per share from
 operations (0.03) 0.01 (0.04) 0.01
 Net income (loss)
 per share ($0.85) ($0.04) ($0.98) $0.25
 Weighted average
 shares outstanding 10,093 10,068 10,093 10,068
 -0- 8/18/93
 /CONTACT: Robert W. Schultz of Sam & Libby, Inc., 212-944-4830/

CO: Sam & Libby, Inc. ST: New York IN: HOU SU: ERN

SM -- NY022 -- 3855 08/18/93 10:54 EDT
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Publication:PR Newswire
Date:Aug 18, 1993

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