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SHOPKO STORES REPORTS FIRST QUARTER RESULTS

 GREEN BAY, Wis., June 29 /PRNewswire/ -- ShopKo Stores, Inc. (NYSE: SKO) today reported increased sales but lower net earnings for its first quarter (16 weeks ended June 19, 1993).
 First quarter sales increased 1.3 percent to $474.6 million versus the $468.4 million reported for the same period last year. Comparable store sales increased 0.6 percent. Net earnings before the effect of an accounting change declined 42.0 percent to $6.3 million, or $0.20 per share, compared to $10.9 million or $0.34 per share for the same period last year.
 In the first quarter, the company adopted Statement of Financial Accounting Standard ("SFAS") No. 106, which requires the company to accrue for future post-retirement medical benefits. As a result, the company recorded a net charge for accounting change of $0.6 million, net of applicable taxes, equal to $0.02 per share. In addition the company also adopted SFAS No. 109, "Accounting for Income Taxes." There was no earnings impact as a result of adopting SFAS No. 109.
 "This was a difficult quarter affected negatively by unseasonable weather in all our markets, generally sluggish economic conditions and lower consumer confidence," said Dale P. Kramer, president and chief executive officer. "Sales in the spring apparel and lawn and garden categories were down significantly from a year ago."
 Gross margin for the first quarter (16 weeks ended June 19, 1993) was 26.5 percent versus 27.4 percent for the same period last year. The decrease can be attributed to the weather's impact on the sale of spring merchandise and the continuation of the company's competitive pricing strategy. Selling, general and administrative expenses for the first quarter were 23.9 percent of sales versus 23.2 percent of sales in the first quarter last year. The increase is primarily the result of added payroll costs associated with the company's expanded commitment to customer satisfaction and the company's initiative to enhance its central replenishment capabilities.
 ShopKo Stores, Inc. is a leading regional discount department store chain operating 111 stores in 13 states, concentrated in the Upper Midwest, Mountain and Pacific Northwest states. ShopKo will open eight new stores in 1993 including stores in Dixon, Ill.; Loveland and Longmont, Colo.; Duluth, Minn.; Lacey, Wash., and Sheboygan, Wis.; and relocated stores in Marshall, Minn., and Mitchell, S.D. Illinois and Colorado will become the 14th and 15th states in the ShopKo chain. Thirty-seven new stores are planned for 1994-1996. ShopKo stock is traded on the New York Stock Exchange, Philadelphia, Midwest and Pacific exchanges under the symbol "SKO."
 SHOPKO STORES, INC. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF EARNINGS
 (In thousands except per share data)
 Quarter Ended
 June 19, June 20,
 1993 1992
 (16 weeks) (16 weeks)
 Revenues:
 Net sales $474,599 $468,358
 Licensed department rentals
 and other income 3,374 3,245
 Total 477,973 471,603
 Costs and expenses:
 Cost of Sales 348,675 340,174
 Selling, general and
 administrative expenses 113,374 108,528
 Interest expense 5,658 5,021
 Total 467,707 453,723
 Earnings before income taxes and
 cumulative effect of change in
 accounting principle 10,266 17,880
 Provision for income taxes 3,930 6,952
 Earnings before cumulative effect of
 change in accounting principle 6,336 10,928
 Cumulative effect of change in
 accounting principle (617) ---
 Net Earnings $5,719 $10,928
 Net earnings per common share:
 Earnings per common share before
 cumulative effect of change in
 accounting principle $0.20 $0.34
 Cumulative effect of change in
 accounting principle (0.02) ---
 Net Earnings per common share $0.18 $0.34
 Weighted average number of common
 shares outstanding 32,000 32,000
 -0- 6/29/93
 /CONTACT: Gene Bankers, vice president of ShopKo Stores, Inc., 414-496-4158/
 (SKO)


CO: ShopKo Stores, Inc. ST: Wisconsin IN: REA SU: ERN

PS -- CL003 -- 6504 06/29/93 06:41 EDT
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Publication:PR Newswire
Date:Jun 29, 1993
Words:644
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