Exhibit 99.1
S & K FAMOUS BRANDS REPORTS FIRST QUARTER EARNINGS
Richmond, VA, May 23, 2003 -- S&K Famous Brands, Inc. (NASDAQ:SKFB;
www.skmenswear.com), today announced earnings for the first quarter ended May 3,
2003.
Net income for the quarter was $1,561,000, or $0.63 per diluted share, compared
to $1,474,000, or $0.38 per diluted share, in the same period last year. The
increase in earnings per share was primarily the result of reduced shares
outstanding following the tender offer last year. As previously announced, sales
for the first quarter were $42.2 million compared to $41.8 million last year.
Same-store sales for the quarter increased 1%.
Stewart M. Kasen, President and Chief Executive Officer, said, "The improvement
in first quarter's net income coupled with the 37% reduction in weighted average
shares outstanding drove a 66% increase in earnings per share. In light of the
difficult retail environment, we are pleased with this early trend in the new
year."
S&K Famous Brands, Inc. is a retailer of value-priced menswear operating 234
stores in 27 states reaching from the East Coast to Texas and from Maine to
Florida. S&K offers a complete line of men's apparel generally priced 20-40%
below department store and specialty store regular prices. For more information,
go to our Web site at www.skmenswear.com.
(Financial Tables Follow)
Except for historical information contained herein, the statements in this
release may be forward-looking and are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve known and unknown risks and uncertainties,
which may cause the Company's actual results in future periods to differ
materially from forecasted or expected results. Those risks include, among other
things, the competitive environment in the value-priced men's apparel industry
in general and in the Company's specific market area, inflation, changes in
costs of goods and services and economic conditions in general and in the
Company's specific market area. Those and other risks are more fully described
in the Company's filings with the Securities and Exchange Commission.
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S & K FAMOUS BRANDS, INC.
STATEMENTS OF INCOME
(unaudited)
($ and shares in 000s, except per share data) Three Months Ended
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May 3, 2003 May 4, 2002
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Net sales $42,183 $41,791
Cost of sales..................................... 21,341 21,204
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Gross profit...................................... 20,842 20,587
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Other costs and expenses:
Selling, general and administrative............ 17,469 17,443
Interest....................................... 94 13
Depreciation and amortization.................. 787 797
Other income, net.............................. (25) (43)
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Income before income taxes........................ 2,517 2,377
Provision for income taxes........................ 956 903
---------------------------------
Net income........................................ $ 1,561 $ 1,474
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Diluted net earnings per share.................... $ 0.63 $ 0.38
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Weighted average common shares outstanding
plus dilutive potential common shares.......... 2,487 3,927
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Effective income tax rate......................... 38.0% 38.0%
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CONDENSED BALANCE SHEETS
(unaudited)
($ in 000s) May 3, 2003 May 4, 2002
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Assets:
Cash and cash equivalents............. $ 519 $ 5,491
Inventory............................. 55,017 50,339
Other current assets.................. 3,339 3,657
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Total current assets.............. 58,875 59,487
Property and equipment, net........... 15,555 17,011
Other assets.......................... 7,184 6,792
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$81,614 $83,290
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Liabilities and Shareholders' Equity:
Accounts payable...................... $17,068 $14,691
Other current liabilities............. 6,275 3,709
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Total current liabilities......... 23,343 18,400
Long-term debt........................ 8,832 18,079
Other long-term liabilities........... 1,704 1,609
Deferred income taxes................. 1,503 1,450
Shareholders' equity.................. 46,232 43,752
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$81,614 $83,290
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