Microsoft Word 10.0.3416;3682099
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): April 24, 2003
Blair Corporation
(Exact name of registrant as specified in its charter)
Delaware 001-00878 25-0691670
-------- --------- ----------
(State or other (Commission File No.) (I.R.S. Employer
Jurisdiction of Identification No.)
incorporation)
220 Hickory Street, Warren, Pennsylvania 16366-0001
(Address of Principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (814) 723-3600
Not Applicable
(Former name or former address, if changed since last report)
Item 7. Final Statements, Pro Forma Final Information and Exhibits.
(c) Exhibits
Exhibit 99.1. Press Release.
Item 9. Regulation FD Disclosure and Item 12 Disclosure of Results of
Operations and Financial Condition.
-----------------------------------------------------------------------------
The following information is furnished pursuant to Item 9, "Regulation
FD Disclosure" and Item 12, "Disclosure of Results of Operations and Financial
Condition."
On April 24, 2003, Blair Corporation issued a press release announcing
its earnings for the three months ended March 31, 2003. The information
contained in the press release, which is attached as Exhibit 99.1 to this Form
8-K, is incorporated herein by reference.
SIGNATURES
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 hereunto duly authorized.
Date: April 24, 2003 Blair Corporation
By: John E. Zawacki
------------------------------------
John E. Zawacki
President and Chief Executive Officer
By: Bryan J. Flanagan
-------------------------------------
Bryan J. Flanagan
Senior Vice President and Chief
Financial Officer
FOR IMMEDIATE RELEASE:
CONTACTS:
Blair Corporation Carl Hymans
Bryan Flanagan, SVP/Chief Financial Officer G.S. Schwartz & Co
Thomas McKeever, SVP/Operations & Administration 212-725-4500
Kent Sivillo, VP/Finance carlh@schwartz.com
814-723-3600
BLAIR CORPORATION REPORTS FIRST QUARTER RESULTS
WARREN, Pa., (April 24, 2003) -- Blair Corporation (Amex: BL), (www.blair.com),
a national catalog and multi-channel direct marketer of women's and men's
apparel and home products, today announced results for the first quarter ended
March 31, 2003.
Net sales for the first quarter ended March 31, 2003 increased to $137,013,544
compared to $135,261,455 reported for the first quarter ended March 31, 2002.
Net income for the first quarter ended March 31, 2003 was $500,189, or $.06 per
basic and diluted share, compared to net income of $5,601,131, or $.70 per basic
and diluted share, reported for the first quarter last year. The reduction in
net income was primarily attributable to increased cost of goods sold and
advertising expenses.
Cost of goods sold as a percentage of net sales increased to 49.5% for the first
quarter of 2003 from 47.7% in the comparable quarter last year. The rise in cost
of goods sold reflects an increase in sales generated from promotional
activities to address lower response rates, higher inbound air freight expenses
and a greater mix of outbound packages in excess of one pound that increased
shipping costs.
Advertising expenses rose 13% resulting from a strategic increase in catalog and
letter mailings to current and prospective customers.
General & administrative costs rose 3.3% and included costs associated with the
implementation of Blair's fulfillment operation. This initiative is expected to
be fully operational by the end of the second quarter and will increase
efficiency and productivity while reducing overall operating costs.
"Blair achieved a slight increase in sales and market share despite difficult
current economic conditions and a significant downturn in the industry. Our net
income results were affected by the general economic weakness and slowdown in
consumer spending which has impacted the retail and direct marketing industries.
The increase in costs and expenses reflect the necessary steps taken to secure
current and future sales in this difficult market," said Bryan J. Flanagan,
Senior Vice President and Chief Financial Officer.
John E. Zawacki, President and Chief Executive Officer said, "While lower
response rates adversely impacted profitability, we have demonstrated Blair's
ability to quickly develop and implement initiatives to address the challenges
the direct marketing industry is facing. Our additional mailings and promotions
helped generate increased sales while expanding our customer base."
"Blair remains focused on expanding its core businesses while capitalizing on
its growth initiatives. Our Crossing Pointe catalog and e-commerce initiatives
continue to generate increasing revenue and grow our customer files. Blair's
e-commerce channel generated $16 million in gross sales demand in the first
quarter of 2003 compared to $13 million in 2002.
We are confident that our near-term investments will generate long-term growth.
We continue to maintain a strong balance sheet and implement our strategic plan
to further enhance our position as the premier direct marketer to
value-conscious consumers. We are committed to increasing long-term
profitability and shareholder value," concluded Mr. Zawacki.
About Blair
Headquartered in Warren, Pennsylvania, Blair Corporation sells a broad array of
women's and men's apparel and home products, primarily through direct mail
merchandising as well as its Web site, www.blair.com and other Web sites. Blair
Corporation employs over 2,700 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 $560 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, interest rate fluctuations, decreased consumer spending,
decreased 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.
--Financial table follows--
BLAIR CORPORATION
COMPARATIVE OPERATING HIGHLIGHTS
(UNAUDITED)
For the Three Months Ended March 31
2003 2002
---- ----
Net sales $137,013,544 $135,261,455
Income before income taxes 794,189 8,660,131
Income taxes 294,000 3,059,000
Net income 500,189 5,601,131
Basic and diluted earnings per share $ .06 $.70
Average shares outstanding 8,044,760 7,969,869
Selected Balance Sheet Items as of March 31
2003 2002
---- ----
Customer accounts receivable $146,268,676 $149,962,957
Inventories $ 77,620,131 $ 85,309,215
Total assets $335,228,652 $320,574,211
Total liabilities $78,324,545 $74,322,937
Stockholders' equity $256,904,107 $246,251,274
Total liabilities and stockholders'
equity $335,228,652 $320,574,211