Consolidated Balance Sheets

(In thousands, except per share amounts)

(Unaudited)

	June 30, 2004			December 31, 2003
Assets
Current assets:
Cash and cash equivalents	$	3,817		$	5,350
Accounts receivable, net	18,642			23,814
Merchandise inventories	313,208			288,873
Prepaid expenses and deposits	18,803			11,543
Deferred income taxes	5,631			5,631
Total current assets	360,101			335,211

Property and equipment, net	92,991			93,347
Goodwill	25,995			25,995
Deposits and other assets, net	5,698			6,318
	$	484,785		$	460,871

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	44,952		$	47,778
Accrued expenses and other current liabilities	50,167			71,616
Merchandise advances	16,593			17,104
Total current liabilities	111,712			136,498

Other long-term liabilities	6,428			5,982
Deferred income taxes	4,220			4,220
Long-term debt	100,000			100,000
Total liabilities	222,360			246,700

Stockholders’ equity:
Preferred Stock; authorized 5,000 shares at June 30, 2004 and December 31, 2003, none issued and outstanding	—			—
Common Stock, $0.01 par value, authorized 55,000 shares, issued and outstanding 25,145 at June 30, 2004 and 23,998 at December 31, 2003	251			240
Additional paid in capital	300,552			276,233
Accumulated deficit	(38,378		)	(62,302		)
Net stockholders’ equity	262,425			214,171
	$	484,785		$	460,871

Consolidated Statements of Income

(In thousands, except per share data)

(Unaudited)

	Three months ended June 30,
	2004		2003

Net sales	$	339,622	$	291,600
Cost of goods sold, buying and occupancy	245,409		216,050
Gross profit	94,213		75,550

Selling, general and administrative expenses	73,200		62,666
Operating income	21,013		12,884

Interest expense, net	1,425		2,956

Income before income taxes	19,588		9,928

Income taxes	7,444		3,778

Net income	$	12,144	$	6,150

Net income per share
Basic	$	0.49	$	0.27
Diluted	$	0.47	$	0.25

Weighted average shares outstanding
Basic	24,676		22,995
Diluted	25,967		24,173

(In thousands, except per share data)

(Unaudited)

	Six months ended June 30,
	2004		2003

Net sales	$	689,325	$	579,142
Cost of goods sold, buying and occupancy	500,429		428,936
Gross profit	188,896		150,206

Selling, general and administrative expenses	147,518		125,664
Operating income	41,378		24,542

Interest expense, net	2,788		6,095

Income before income taxes	38,590		18,447

Income taxes	14,666		7,020

Net income	$	23,924	$	11,427

Net income per share
Basic	$	0.98	$	0.50
Diluted	$	0.93	$	0.48

Weighted average shares outstanding
Basic	24,432		22,894
Diluted	25,744		23,928