Exhibit 99.1
S & K FAMOUS BRANDS REPORTS FIRST QUARTER RESULTS
Richmond, VA, May 20, 2004 -- S&K Famous Brands, Inc. (NASDAQ:SKFB;
www.skmenswear.com), today announced earnings for the first quarter ended May 1,
2004.
Net income for the quarter was $1,772,000, or $0.67 per diluted share, compared
to $1,529,000, or $0.61 per diluted share, in the same period last year. As
previously announced, sales for the first quarter were $50.9 million compared to
$44.0 million last year. Same-store sales for the quarter increased 12.9%.
Stewart M. Kasen, President and Chief Executive Officer, said, "The 15.9% higher
net income in the first quarter resulted from increased customer response to our
value pricing strategy as well as significantly improved leverage of expenses."
S&K Famous Brands, Inc. is a retailer of value-priced menswear operating 241
stores in 27 states reaching from the East Coast to Texas and from Maine to
Florida. S&K offers a complete line of men's apparel generally priced 20-40%
below department store and specialty store regular prices. For more information,
go to our Web site at www.skmenswear.com.
(Financial Tables Follow)
Except for historical information contained herein, the statements in this
release may be forward-looking and are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve known and unknown risks and uncertainties,
which may cause the Company's actual results in future periods to differ
materially from forecasted or expected results. Those risks include, among other
things, the competitive environment in the value-priced men's apparel industry
in general and in the Company's specific market area, inflation, changes in
costs of goods and services and economic conditions in general and in the
Company's specific market area. Those and other risks are more fully described
in the Company's filings with the Securities and Exchange Commission.
# # #
S & K FAMOUS BRANDS, INC.
STATEMENTS OF INCOME
(unaudited)
($ and shares in 000s, except per share data) Three Months Ended
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May 1, 2004 May 3, 2003
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Net sales $50,910 $44,019
Cost of sales............................................ 27,946 22,983
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Gross profit............................................. 22,964 21,036
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Other costs and expenses:
Selling, general and administrative................... 19,351 17,743
Interest.............................................. 43 94
Depreciation and amortization......................... 750 758
Other income, net..................................... (38) (25)
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Income before income taxes............................... 2,858 2,466
Provision for income taxes............................... 1,086 937
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Net income............................................... $ 1,772 $ 1,529
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Diluted net earnings per share........................... $ 0.67 $ 0.61
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Weighted average common shares outstanding plus
dilutive potential common shares...................... 2,657 2,504
====================================
Effective income tax rate................................ 38.0% 38.0%
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CONDENSED BALANCE SHEETS
(unaudited)
($ in 000s) May 1, 2004 May 3, 2003
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Assets:
Cash and cash equivalents...................... $2,787 $ 3,193
Inventory...................................... 57,212 55,017
Other current assets........................... 4,490 3,339
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Total current assets....................... 64,489 61,549
Property and equipment, net.................... 15,374 15,555
Other assets................................... 3,969 7,184
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$83,832 $84,288
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Liabilities and Shareholders' Equity:
Accounts payable............................... $18,757 $17,068
Other current liabilities...................... 7,761 8,949
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Total current liabilities.................. 26,518 26,017
Long-term debt................................. 4,060 8,832
Other long-term liabilities.................... 2,410 1,735
Deferred income taxes.......................... 1,227 1,503
Shareholders' equity........................... 49,617 46,201
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$83,832 $84,288
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