Exhibit 99.1
S & K FAMOUS BRANDS REPORTS SECOND QUARTER EARNINGS
Richmond, VA, August 19, 2003--S&K Famous Brands, Inc. (NASDAQ:SKFB;
www.skmenswear.com ) today announced results for the second quarter and six
months ended August 2, 2003.
Net income for the second quarter ended August 2, 2003 was $301,000, or $0.12
per diluted share, compared to $55,000, or $0.02 per diluted share, in the same
period last year. Total sales for the quarter increased 9% to $39.4 million
compared to $36.1 million in the same quarter of last year. Comparable store
sales for the second quarter were up 9% compared to a year ago.
For the six months ended August 2, 2003, net income was $1,862,000, or $0.75 per
diluted share, compared to $1,528,000, or $0.47 per diluted share, for the same
period last year. Total sales for the first six months of 2003 increased 5% to
$81.6 million compared to $77.9 million for the first six months of last year.
Same-store sales for the first six months were up 5% over last year.
Stewart M. Kasen, President and Chief Executive Officer, said, "The Company's
second quarter pre-tax earnings were significantly higher than last year. This
increase coupled with the 23% reduction in weighted average shares outstanding
year-to-date drove a 60% improvement in earnings per share for the first six
months. Most of this quarter's elevated inventory levels were planned to fuel
higher sales. We are pleased with our first half results."
During the first six months, the Company has relocated two stores and closed two
other stores because they had not met the Company's sales and profitability
expectations.
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 to 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.
# # #
S&K FAMOUS BRANDS REPORTS SECOND QUARTER EARNINGS
S & K FAMOUS BRANDS, INC.
STATEMENTS OF INCOME
(unaudited)
($ and shares in 000s, except per share data) Three Months Ended Six Months Ended
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August 2, August 3, August 2, August 3,
2003 2002 2003 2002
------------ ----------- ------------ ------------
Net sales $39,432 $36,094 $81,615 $77,885
Cost of sales....................................... 21,007 19,196 42,347 40,400
------------ ----------- ------------ ------------
Gross profit........................................ 18,425 16,898 39,268 37,485
Other costs and expenses:
Selling, general and administrative.............. 17,053 16,005 34,523 33,448
Interest......................................... 124 153 217 166
Depreciation and amortization.................... 790 790 1,577 1,587
Other income, net................................ (28) (138) (53) (181)
------------ ----------- ------------ ------------
Income before income taxes.......................... 486 88 3,004 2,465
Provision for income taxes.......................... 185 33 1,142 937
------------ ----------- ------------ ------------
Net income.......................................... $ 301 $ 55 $ 1,862 $ 1,528
============ =========== ============ ============
Diluted net earnings per share...................... $ .12 $ .02 $ .75 $ .47
============ =========== ============ ============
Weighted average common shares outstanding plus
dilutive potential common shares................. 2,501 2,561 2,493 3,244
============ =========== ============ ============
Effective income tax rate........................... 38.0% 38.0% 38.0% 38.0%
============ =========== ============ ============
CONDENSED BALANCE SHEETS
(unaudited)
($ in 000s) August 2, August 3,
2003 2002
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Assets:
Inventory.............................................. $53,186 $45,563
Other current assets................................... 4,441 5,051
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Total current assets............................... 57,627 50,614
Property and equipment, net............................ 15,337 16,524
Other assets........................................... 7,297 6,978
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$80,261 $74,116
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Liabilities and Shareholders' Equity:
Accounts payable....................................... $10,217 $8,635
Other current liabilities.............................. 5,882 4,067
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Total current liabilities.......................... 16,099 12,702
Long-term debt......................................... 14,395 14,208
Other long-term liabilities............................ 1,717 1,636
Deferred income taxes.................................. 1,505 1,463
Shareholders' equity................................... 46,545 44,107
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$80,261 $74,116
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