ST. LOUIS, May 4 /PRNewswire/ -- Edison Brothers Stores Inc.
(Nasdaq: EDBR) today announced it has reported 1997 results in the company's
Form 10-K report filed with the Securities and Exchange Commission. Edison
lost $15.4 million for the 17 weeks ended Jan. 31, 1998 (the period after
emergence from Chapter 11) and $46.9 million for the 35 weeks ended
Oct. 4, 1997 (the period pre-emergence).
For the 13 weeks ended Jan. 31, 1998, Edison reported a net loss of
$8.6 million, or 84 cents per share. Total sales for the fourth quarter of
1997 were $273.4 million, a decrease of 11.3 percent from $308.3 million in
fourth quarter 1996. Same-store sales for the fourth quarter 1997 decreased
2.5 percent from the same period in 1996. The fourth quarter 1997 also
included a pre-tax charge of $2.1 million for impairment of long-lived assets.
Full-year financial data for 1997 are not comparable to prior years due to
Edison's emergence from Chapter 11 and the resulting implementation of "fresh
start reporting" effective Oct. 4, 1997. For the same reason, the company's
post-emergence financial results, which include the fourth quarter 1997, are
not directly comparable to results during the pre-emergence period.
Edison has also filed with the SEC an amended Form 10-Q report for the
third quarter 1997 to reflect changes to its condensed consolidated balance
sheet related to its reorganization value in excess of identifiable assets.
Company Realigns Field Operations
Edison is realigning its field management structure to streamline and
improve store operations. The company expects the move will enhance
merchandise presentation and customer service, and result in annual cost
savings of more than $4.0 million.
Under the new system, field executives will supervise all Edison stores in
a focused geographic area instead of being responsible for all stores of a
single chain in a larger geographic district. The cross-chain organization
will eliminate 130 regional and market management positions.
"This reflects the company's new strategy, providing corporate-wide
services to all chains," Chairman and CEO Lawrence E. Honig said. "Previously
each chain operated as an independent organization -- creating duplicate
structures. Now our managers will travel less and spend more time in stores.
This will improve our merchandise presentation and customer service, and save
the company money."
Edison Brothers Stores Inc. operates Bakers and Wild Pair footwear stores;
5-7-9 junior apparel stores; Riggings, JW, Coda, Oaktree and Repp Ltd Big &
Tall menswear stores; and Repp By Main men's catalog. With more than $940
million in annual sales and nearly 1,600 stores in the United States, Canada,
Puerto Rico and the Virgin Islands, Edison is one of the largest specialty
retailers of apparel, footwear and accessories in North America. Additional
information about Edison Can be found on the company's Web site at
http://www.edisonbrothers.com
SOURCE Edison Brothers Stores Inc.
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Related links:
http://www.edisonbrothers.com
CONTACT:
Jack Burtelow, CAO and CFO, 314-331-6530 or
Suzanne Roth, Communications Director, 314-331-6564, both of
Edison Brothers Stores
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