[borders/disc4ahdr.htm]

Blair Reports Second Quarter

From: ASAP

Comments

Blair Corporation (http://www.blair.com/), a national catalog and multi-channel direct marketer of women's and men's apparel and home products, today announced results for the second quarter and six months ended June 30, 2002.

Net sales for the second quarter ended June 30, 2002 were $147,513,331 compared to $164,093,069 reported for the second quarter ended June 30, 2001.

Net income for the second quarter ended June 30, 2002 increased to $7,032,678, or $0.88 per share, compared to net income of $5,479,266, or $0.69 per share, reported for the second quarter last year. Net income for the second quarter ended June 30, 2001 includes $4 million of pre-tax interest income resulting from a favorable Internal Revenue tax settlement. Without the one-time gain in interest income, net income for the 2001 second quarter would have been $2,920,444, or $0.37 per share.

Net sales for the six months ended June 30, 2002 were $282,774,786 compared to $297,148,214 reported for the first six months ended June 30, 2001.

Net income for the six months ended June 30, 2002 rose to $12,633,809, or $1.58 per share compared to net income of $5,247,320, or $.66 per share, reported for the six months last year. Net income for the six months ended June 30, 2001 includes the aforementioned $4 million of pre-tax interest income from the favorable Internal Revenue tax settlement. Without the one-time gain in interest income, net income for the six months ended June 30, 2001 would have been $2,685,153, or $.34 per share.

Results for the second quarter and first six months of 2002 reflect decreases in operating costs, cost of goods sold and the provision for doubtful accounts. Operating costs, which include advertising, general & administrative and interest expenses, decreased 14.7% in the second quarter and 12.5% for the first six months, compared to the like periods a year ago.

Cost of goods sold as a percentage of net sales decreased to 46.7% for the second quarter of 2002 from 48.1% for the second quarter of 2001. Cost of goods sold as a percentage of net sales decreased to 47.2% for the first six months of 2002 from 48.2% for the first six months of 2001. These reductions are primarily due to more effective inventory management resulting in lower inventory liquidation costs.

The provision for doubtful accounts for the second quarter and first six months of 2002 decreased 23.5% and 18.3% respectively, compared to the like periods last year. The decreases reflect Blair's ability to manage its consumer credit program and a reduction in credit sales in 2002. At June 30, 2002, the resulting allowance for doubtful accounts as a percentage of delinquent accounts remained unchanged from June 30, 2001.

John E. Zawacki, President and CEO said, "Despite generally weak economic conditions, we continue to generate positive bottom-line results by further reducing overall operating expenses while continuing to implement our strategic marketing efforts for future growth. We are particularly pleased that our 2002 net income results for the second quarter and six months exceeded those reported last year without the benefit of any one-time financial gains such as those which occurred in the comparable periods of 2001."

"While experiencing a strong performance from our core apparel lines, we also continue to expand our customer base through the growing appeal of Crossing Pointe and Internet shopping. We believe future sales and profitability will continue to benefit from investments being made to enhance our core businesses and growth initiatives including Crossing Pointe and e-commerce. In the first six months of 2002, Blair has generated over $25 million in e-commerce gross sales demand as compared to over $10 million in the first six months of 2001."

"Our balance sheet remains strong and we continue to enhance our position as a premiere direct marketer to value conscious consumers. Blair is committed to increasing long-term profitability and shareholder value as we work to become a billion-dollar company before the end of the decade," concluded Mr. Zawacki.

ASAP Fashion News Fast - Fashion news for the apparel industry and consumers to learn more about the clothing business.

Apparel Search  ASAP News

[borders/disc4aftr.htm]