8-K

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 8-K


                                 CURRENT REPORT



                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934

         Date of Report (Date of earliest event reported): May 7, 2003


                            FACTORY 2-U STORES, INC.
                            ------------------------
             (Exact name of registrant as specified in its charter)


                                    DELAWARE
                                    --------
                 (State or other jurisdiction of incorporation)

       0-16309                                          51-0299573
       -------                                          ----------
(Commission File Number)                     (IRS Employer Identification No.)


                  4000 RUFFIN ROAD, SAN DIEGO, CALIFORNIA 92123
                  ---------------------------------------------
                    (Address of principal executive offices)


       Registrant's telephone number, including area code: (858) 627-1800


                                       N/A
                                       ---
          (Former name or former address, if changed since last report)





The information in this Current Report on Form 8-K, including the exhibit, is
furnished pursuant to Item 12 and shall not be deemed "filed" for the purposes
of Section 18 of the Securities and Exchange Act of 1934, as amended, or
otherwise subject to the liabilities under that Section. In addition, the
information in this Current Report on Form 8-K, including the exhibits, shall
not be deemed to be incorporated by reference into the filings of Factory 2-U
Stores, Inc. under the Securities Act of 1933, as amended.



Item 7.  Exhibits.

         Exhibit No.         Description
         -----------         -----------
         99.1                Press release of Factory 2-U Stores, Inc., dated
                             May 7, 2003.


Item 12.  Results of Operations and Financial Condition

On May 7, 2003, we announced the sales for the four-week and 13-week periods
ended May 3, 2003. The full text of our press release dated May 7, 2003 is
attached as exhibit hereto.






SIGNATURE

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                           FACTORY 2-U STORES, INC.


     May 9, 2003                           By: /s/ Douglas C. Felderman
     -----------                               ------------------------
        Date                                   Douglas C. Felderman
                                               Executive Vice President and
                                                 Chief Financial Officer









                                  EXHIBIT INDEX

 Exhibit No.                 Description
 -----------                 -----------
 99.1                        Press release of Factory 2-U Stores, Inc.,
                             dated May 7, 2003.

EX-99

                                                                    Exhibit 99.1

                 FACTORY 2-U STORES, INC. ANNOUNCES APRIL SALES


         SAN DIEGO, CA, May 7, 2003 - FACTORY 2-U STORES, INC. (Nasdaq: FTUS)
today announced that sales for the four-week period ended May 3, 2003 were $35.2
million, an increase of 2.1% over sales of $34.5 million for the four-week
period ended May 4, 2002. Comparable store sales for the four-week period ended
May 3, 2003 increased 3.7% versus a decrease of 17.9% for the same period last
year. For the four-week period ended May 3, 2003, the Company temporarily closed
1 store in Arizona.

         Sales for the thirteen weeks ended May 3, 2003 totaled $104.3 million
compared to $117.0 million for the thirteen-week period ended May 4, 2002, a
decrease of 10.8%. Comparable store sales for the thirteen-week period ended May
3, 2003 decreased 7.4% versus a decrease of 11.8% for the same period last year.
For the thirteen weeks ended May 3, 2003, the Company opened 1 new store and
closed 3 stores: two permanent and one temporary closure.

         Bill Fields, Chairman and Chief Executive Officer, commented,
"Comparable store sales increased as a result of an improved in-store inventory
position and the calendar shift of pre-Easter sales from March to April.
Transaction counts increased while our average purchase size declined during the
April sales period. Our Home business performed the best with positive
comparable sales in the high teens, followed by our Children's category with
positive low single-digit comparable sales. Geographically, our best performing
areas were Dallas, Houston, and San Antonio, TX and San Diego, CA with positive
comparable store sales ranging from the mid teens to low thirties. Washington,
Oregon and parts of central California were our worse performing areas with
negative mid single-digit comparable store sales."

         Mr. Fields continued, "As we begin our second quarter, we do so with a
significantly improved inventory position, increased credit support from our
suppliers and a more stable flow of merchandise. With these improvements we are
in a much better position to execute our strategy of improving our value
statement in terms of price, assortment and in-store execution."

         We will provide a mid-month sales update for May on May 19, 2003 at
5:00 P.M. Eastern Standard Time. Those interested can access this update message
at 1-888-201-9603. This message will remain available until June 23, 2003. We
will release our May sales results on June 4, 2003 after the market closes, or
approximately 4:00 P.M. Eastern Standard Time.

         We expect to release our first quarter operating results on May 14,
2003 after the market closes, or approximately 4:00 P.M. Eastern Standard Time.
We will host a real-time webcast presentation and live conference call to
discuss our first quarter operating results and expectations for second quarter
sales and operating results, the same day at 5:00 P.M. Eastern Standard Time. To
participate in the call, dial 1-800-843-7949 five minutes before the call or
access the Internet at www.factory2-u.com. All shareholders and other interested
parties are encouraged to participate. A replay of the call will remain
available for 48 hours by telephone or on the Internet through May 28, 2003. You
may also obtain a transcript of the call by contacting Kehoe, White & Co., Inc.
at 1-562-437-0655.




         FACTORY 2-U STORES, INC. operates 242 "Factory 2-U" off-price retail
stores which sell branded casual apparel for the family, as well as selected
domestics and household merchandise at prices which generally are significantly
lower than the prices offered by its discount competitors. The Company operates
31 stores in Arizona, 2 stores in Arkansas, 64 stores in southern California, 63
stores in northern California, 1 store in Idaho, 8 stores in Nevada, 9 stores in
New Mexico, 1 store in Oklahoma, 15 stores in Oregon, 34 stores in Texas, and 14
stores in Washington.

         Except for the historical information contained herein, the matters
discussed in this news release are forward-looking statements that involve risks
and uncertainties, and actual results could differ materially from the Company's
present expectations. Among the important factors that could cause actual
results to differ materially from those indicated in the forward-looking
statements are: customer demand and trends in the off-price apparel industry,
the effect of economic conditions, the impact of competitive openings and
pricing, supply constraints or difficulties, and other risks detailed in the
Company's Securities and Exchange Commission filings.

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