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SHOPKO STORES REPORTS SECOND QUARTER EARNINGS INCREASE OF 18.1 PERCENT

SHOPKO STORES REPORTS SECOND QUARTER EARNINGS INCREASE OF 18.1 PERCENT
 GREEN BAY, Wis., Sept. 23 /PRNewswire/ -- ShopKo Stores, Inc., (NYSE: SKO) today reported net earnings of $4.4 million for its second quarter (12 weeks ended Sept. 12, 1992) up 18.1 percent from $3.7 million for the same period last year. Earnings per share were $0.14 for the second quarter (12 weeks), up from $0.12 for the same period a year ago.
 Second quarter (12 weeks) sales increased 4.1 percent to $354.2 million from $340.1 million reported for the same period last year. Comparable store sales increased 0.9 percent.
 Year-to-date net earnings (28 weeks ended Sept. 12, 1992) increased 8.6 percent to $15.3 million, or $0.48 per share, compared to $14.1 million, or $0.44 per share, for the same period last year. Year-to- date sales (28 weeks) increased 3.3 percent to $822.5 million versus the $795.9 million reported for the same period last year. Comparable store sales increased 1.2 percent.
 "We are pleased with our second quarter performance, especially when considering this year's sluggish economic conditions and erratic weather patterns," said Dale P. Kramer, ShopKo president and chief executive officer. "We are continuing to emphasize value and quality and know that we are well positioned to meet customer needs." In addition to the new stores opened by ShopKo already this year, seven stores are currently being remodeled and are scheduled for completion in the third quarter. Stores undergoing remodeling to feature ShopKo's Vision 2000 merchandising concept are located in Oshkosh, Stevens Point, LaCrosse and Eau Claire, Wis.; and Omaha, Neb. (four stores).
 The company attributed the favorable year-to-date (28 weeks) net earnings increase primarily to increased sales volume, decreased selling, general and administrative expenses and decreased interest expense, offset by lower gross margins. Year-to-date (28 weeks) gross margin was 26.5 percent compared to 26.8 percent for the same period last year. The decrease was primarily due to the continuation of the company's competitive pricing strategy and weather-related clearance. The gross margin percentages reflect LIFO charges of $3.1 million and $3.5 million respectively. The gross margin percentage prior to the LIFO charge was 26.9 percent this year versus 27.2 percent last year. Year-to-date (28 weeks) selling, general and administrative expenses were 23.0 percent compared to 23.3 percent of sales for the same period last year. The decrease is due to a one-time $900,000 charge related to software development incurred in last year's first quarter and overall effective expense control.
 Second quarter (12 weeks) gross margin was 25.4 percent compared to 25.6 percent for the same period last year. The gross margin reflects LIFO charges of $1.0 million and $1.3 million respectively. Selling, general and administrative expenses for the second quarter (12 weeks) and the same period a year ago were 22.9 percent and 23.2 percent of sales respectively. The decrease is primarily due to lower advertising costs.
 The earnings per share calculations for the second quarter and 28 weeks ended Sept. 7, 1991, were based upon a pro forma 32,000,000 common shares, representing the actual number of shares outstanding after completion of the offering of common stock.
 ShopKo Stores, Inc. is a leading regional discount store chain operating 111 stores in 13 states.
 SHOPKO STORES, INC.
 STATEMENT OF EARNINGS
 (In thousands except per share data)
 Quarter Ended
 September 12, September 7,
 1992 1991
 (12 weeks) (12 weeks)
 Revenues:
 Net sales $354,187 $340,132
 Licensed dept. rentals
 and other income 2,538 2,707
 Total 356,725 342,839
 Costs and expenses:
 Cost of sales 264,107 253,195
 Selling, general and
 administrative expenses 81,069 78,917
 Interest expense 4,352 4,709
 Total 349,528 336,821
 Earnings before income taxes: 7,197 6,018
 Provision for income taxes 2,798 2,295
 Net earnings $ 4,399 $ 3,723
 Net earnings per
 common share $ 0.14 ---
 Weighted average number of
 common shares outstanding 32,000 ---
 Supplemental net earnings
 per common share $ 0.14 $ 0.12
 Supplemental number of
 common shares outstanding 32,000 32,000
 Year to Date
 September 12, September 7,
 1992 1991
 (28 weeks) (28 weeks)
 Revenues:
 Net sales $822,545 $795,938
 Licensed dept. rentals
 and other income 5,783 5,824
 Total 828,328 801,762
 Costs and expenses:
 Cost of sales 604,281 582,610
 Selling, general and
 administrative expenses 189,596 185,622
 Interest expense 9,373 10,702
 Total 803,250 778,934
 Earnings before income taxes: 25,078 22,828
 Provision for income taxes 9,750 8,710
 Net earnings $ 15,328 $ 14,118
 Net earnings per
 common share $ 0.48 ---
 Weighted average number of
 common shares outstanding 32,000 ---
 Supplemental net earnings
 per common share $ 0.48 $ 0.44
 Supplemental number of
 common shares outstanding 32,000 32,000
 -0- 9/23/92
 /CONTACT: Gene Bankers, vice president of ShopKo Stores, Inc., 414-496-4158/
 (SKO) CO: ShopKo Stores, Inc. ST: Wisconsin IN: REA SU: ERN


KK -- CL003 -- 2468 09/23/92 08:28 EDT
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Date:Sep 23, 1992
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