EX-99.1 2 ex_991.txt PRESS RELEASE 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 ------------------------------------ May 1, 2004 May 3, 2003 ------------------------------------ Net sales $50,910 $44,019 Cost of sales............................................ 27,946 22,983 ------------------------------------ Gross profit............................................. 22,964 21,036 ------------------------------------ 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) ------------------------------------ Income before income taxes............................... 2,858 2,466 Provision for income taxes............................... 1,086 937 ------------------------------------ Net income............................................... $ 1,772 $ 1,529 ==================================== Diluted net earnings per share........................... $ 0.67 $ 0.61 ==================================== Weighted average common shares outstanding plus dilutive potential common shares...................... 2,657 2,504 ==================================== Effective income tax rate................................ 38.0% 38.0% ==================================== CONDENSED BALANCE SHEETS (unaudited) ($ in 000s) May 1, 2004 May 3, 2003 ----------------- ----------------- Assets: Cash and cash equivalents...................... $2,787 $ 3,193 Inventory...................................... 57,212 55,017 Other current assets........................... 4,490 3,339 ----------------- ----------------- Total current assets....................... 64,489 61,549 Property and equipment, net.................... 15,374 15,555 Other assets................................... 3,969 7,184 ----------------- ----------------- $83,832 $84,288 ================= ================= Liabilities and Shareholders' Equity: Accounts payable............................... $18,757 $17,068 Other current liabilities...................... 7,761 8,949 ----------------- ----------------- 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 ----------------- ----------------- $83,832 $84,288 ================= ================= ###