Blair Corporation Reports First Quarter Results

Apr 30, 2001, 01:00 ET from Blair Corporation

    WARREN, Pa., April 30 /PRNewswire/ -- Blair Corporation (Amex:   BL),
 http://www.blair.com, a national catalog and direct mail marketer of women's
 and men's apparel and home products, today reported results for the first
 quarter ended March 31, 2001.
     Net sales for the first quarter ended March 31, 2001 were $133,055,145
 compared to $130,063,638 reported for the first quarter ended March 31, 2000.
 Blair reported a loss for the first quarter of 2001 of $231,946 or $.03 per
 share reflecting a one-time $2.5 million cost associated with the Company's
 voluntary separation program, compared to net income of $6,938,156, or $.85
 per share, reported for the first quarter last year. Without the one-time
 charge, Blair would have reported net income of $1,225,575 or $.15 per share
 for the first quarter of 2001.
     In January, Blair announced plans to invest $23 million to modernize and
 enhance its merchandise fulfillment capabilities and capacity. As a result,
 the Company's merchandise returns operations will be relocated and its mailing
 operations will be progressively outsourced to an Atlanta-based company. Of
 the nearly 325 Blair employees affected by the changes, approximately 50
 eligible employees chose to participate in Blair's voluntary separation
 program, rather than relocate or accept other positions in the Company.
     Results for the first quarter were primarily affected by lower than
 expected response rates, reflecting decreased consumer spending and uncertain
 economic conditions. The quarter was also impacted by costs associated with
 investments in several initiatives including e-commerce, "Crossing Pointe" and
 the recently introduced men's and women's targeted apparel catalogs as well as
 an increased provision for doubtful accounts.
     In the first quarter of 2001, Blair announced the consolidation of the
 most successful product categories and items from its three home product
 specialty catalogs into its flagship "Blair Shoppe" catalog. Consolidating the
 strong performers from its specialty categories for the home into its primary
 Blair Shoppe catalog is part of the Company's strategic plan to increase
 profitability and reduce inventory management and catalog production costs in
 the home products line.
     John E. Zawacki, President and CEO said, "Blair continues to implement its
 strategic plan to enhance the Company's position as the premiere direct
 marketer to the growing mature, low-to-moderate income consumer segment. We
 are confident that our near term investments to enhance merchandise
 fulfillment capabilities and capacity, the launch of 'Crossing Pointe' and our
 e-commerce initiatives will generate future growth. We will continue our
 efforts to expand Blair's customer base, develop products designed to appeal
 to a somewhat younger and broader audience, and capitalize on our marketing
 database technology. Blair is committed to generating growth and increasing
 profitability as we work to become a billion-dollar company before the end of
 the decade."
 
     About Blair
     Headquartered in Warren, Pennsylvania, Blair Corporation sells fashion
 apparel for men and women and a broad range of home products, primarily
 through direct mail merchandising. Catalogs and letter-style promotions
 depicting a broad array of women's and men's apparel and home products are
 mailed directly to existing and prospective customers. Blair Corporation
 employs over 2,500 people and operates facilities in Erie, Franklin and Grove
 City, Pennsylvania as well as in Wilmington, Delaware. The Company, which has
 annual sales of more than $500 million, is publicly traded on the American
 Stock Exchange (Amex:   BL).
 
     This release contains statements relating to future results of the Company
 (including certain projections and business trends) that are "forward-looking
 statements" as defined in the Private Securities Litigation Reform Act of
 1995. Actual results may differ materially from those projected as a result of
 certain risks and uncertainties, including but not limited to, changes in
 political and economic conditions, demand for and market acceptance of new and
 existing products, as well as other risks and uncertainties detailed in the
 most recent periodic filings of the Company with the Securities and Exchange
 Commission.
 
                               BLAIR CORPORATION
                        COMPARATIVE FINANCIAL HIGHLIGHTS
                                  (UNAUDITED)
 
 
                                                    For the Three Months Ended
                                                               March 31
                                                         2001           2000
 
     Net sales                                   $133,055,145   $130,063,638
     Income before income taxes (Loss)*             (372,946)     11,154,156
     Income taxes                                   (141,000)      4,216,000
     Net income (Loss)                              (231,946)      6,938,156
 
     Basic and diluted earnings per share (Loss)       $(.03)           $.85
 
     Weighted average shares outstanding            7,968,844      8,115,214
 
 
                                                 Selected Balance Sheet Items
                                                          as of March 31
                                                         2001           2000
 
     Customer accounts receivable                $162,599,071   $165,860,789
     Inventories                                 $132,190,549    $85,952,253
 
     Total assets                                $378,793,020   $321,200,603
     Total liabilities                           $143,140,804    $93,683,348
 
     Stockholders' equity                        $235,652,216   $227,517,255
 
     Total liabilities and
       stockholders' equity                      $378,793,020   $321,200,603
 
     * Reflects a one-time $2.5 million cost associated with the Company's
       voluntary separation program
 
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SOURCE Blair Corporation
    WARREN, Pa., April 30 /PRNewswire/ -- Blair Corporation (Amex:   BL),
 http://www.blair.com, a national catalog and direct mail marketer of women's
 and men's apparel and home products, today reported results for the first
 quarter ended March 31, 2001.
     Net sales for the first quarter ended March 31, 2001 were $133,055,145
 compared to $130,063,638 reported for the first quarter ended March 31, 2000.
 Blair reported a loss for the first quarter of 2001 of $231,946 or $.03 per
 share reflecting a one-time $2.5 million cost associated with the Company's
 voluntary separation program, compared to net income of $6,938,156, or $.85
 per share, reported for the first quarter last year. Without the one-time
 charge, Blair would have reported net income of $1,225,575 or $.15 per share
 for the first quarter of 2001.
     In January, Blair announced plans to invest $23 million to modernize and
 enhance its merchandise fulfillment capabilities and capacity. As a result,
 the Company's merchandise returns operations will be relocated and its mailing
 operations will be progressively outsourced to an Atlanta-based company. Of
 the nearly 325 Blair employees affected by the changes, approximately 50
 eligible employees chose to participate in Blair's voluntary separation
 program, rather than relocate or accept other positions in the Company.
     Results for the first quarter were primarily affected by lower than
 expected response rates, reflecting decreased consumer spending and uncertain
 economic conditions. The quarter was also impacted by costs associated with
 investments in several initiatives including e-commerce, "Crossing Pointe" and
 the recently introduced men's and women's targeted apparel catalogs as well as
 an increased provision for doubtful accounts.
     In the first quarter of 2001, Blair announced the consolidation of the
 most successful product categories and items from its three home product
 specialty catalogs into its flagship "Blair Shoppe" catalog. Consolidating the
 strong performers from its specialty categories for the home into its primary
 Blair Shoppe catalog is part of the Company's strategic plan to increase
 profitability and reduce inventory management and catalog production costs in
 the home products line.
     John E. Zawacki, President and CEO said, "Blair continues to implement its
 strategic plan to enhance the Company's position as the premiere direct
 marketer to the growing mature, low-to-moderate income consumer segment. We
 are confident that our near term investments to enhance merchandise
 fulfillment capabilities and capacity, the launch of 'Crossing Pointe' and our
 e-commerce initiatives will generate future growth. We will continue our
 efforts to expand Blair's customer base, develop products designed to appeal
 to a somewhat younger and broader audience, and capitalize on our marketing
 database technology. Blair is committed to generating growth and increasing
 profitability as we work to become a billion-dollar company before the end of
 the decade."
 
     About Blair
     Headquartered in Warren, Pennsylvania, Blair Corporation sells fashion
 apparel for men and women and a broad range of home products, primarily
 through direct mail merchandising. Catalogs and letter-style promotions
 depicting a broad array of women's and men's apparel and home products are
 mailed directly to existing and prospective customers. Blair Corporation
 employs over 2,500 people and operates facilities in Erie, Franklin and Grove
 City, Pennsylvania as well as in Wilmington, Delaware. The Company, which has
 annual sales of more than $500 million, is publicly traded on the American
 Stock Exchange (Amex:   BL).
 
     This release contains statements relating to future results of the Company
 (including certain projections and business trends) that are "forward-looking
 statements" as defined in the Private Securities Litigation Reform Act of
 1995. Actual results may differ materially from those projected as a result of
 certain risks and uncertainties, including but not limited to, changes in
 political and economic conditions, demand for and market acceptance of new and
 existing products, as well as other risks and uncertainties detailed in the
 most recent periodic filings of the Company with the Securities and Exchange
 Commission.
 
                               BLAIR CORPORATION
                        COMPARATIVE FINANCIAL HIGHLIGHTS
                                  (UNAUDITED)
 
 
                                                    For the Three Months Ended
                                                               March 31
                                                         2001           2000
 
     Net sales                                   $133,055,145   $130,063,638
     Income before income taxes (Loss)*             (372,946)     11,154,156
     Income taxes                                   (141,000)      4,216,000
     Net income (Loss)                              (231,946)      6,938,156
 
     Basic and diluted earnings per share (Loss)       $(.03)           $.85
 
     Weighted average shares outstanding            7,968,844      8,115,214
 
 
                                                 Selected Balance Sheet Items
                                                          as of March 31
                                                         2001           2000
 
     Customer accounts receivable                $162,599,071   $165,860,789
     Inventories                                 $132,190,549    $85,952,253
 
     Total assets                                $378,793,020   $321,200,603
     Total liabilities                           $143,140,804    $93,683,348
 
     Stockholders' equity                        $235,652,216   $227,517,255
 
     Total liabilities and
       stockholders' equity                      $378,793,020   $321,200,603
 
     * Reflects a one-time $2.5 million cost associated with the Company's
       voluntary separation program
 
                     MAKE YOUR OPINION COUNT -- Click Here
                http://tbutton.prnewswire.com/prn/11690X60515172
 
 SOURCE  Blair Corporation