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): July 23, 2004
Blair Corporation
(Exact name of registrant as specified in its charter)
Delaware 001-00878 25-0691670
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(State or other (Commission File No.) (I.R.S. Employer
Jurisdiction of Identification No.)
incorporation)
220 Hickory Street, Warren, Pennsylvania 16366-0001
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(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)
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Item 7. Financial Statements and Exhibits.
(c) Exhibits
Exhibit 99.1. Press Release.
Item 12. Results of Operations and Financial Condition.
The following information is furnished pursuant to Item 12, "Results of
Operations and Financial Condition."
On July 23, 2004 Blair Corporation issued a press release announcing
its earnings for the three months and the six months ended June 30, 2004. 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: July 23, 2004 Blair Corporation
By: John E. Zawacki
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John E. Zawacki
President and Chief Executive Officer
By: Bryan J. Flanagan
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Bryan J. Flanagan
Senior Vice President and Chief
Financial Officer
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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
814-723-3600 carlh@schwartz.com
BLAIR CORPORATION REPORTS SECOND QUARTER RESULTS
WARREN, Pa., (July 23, 2004) -- Blair Corporation (Amex: BL), (), a national
multi-channel direct marketer of women's and men's apparel and home products,
today announced results for the second quarter and six months ended June 30,
2004.
Net sales for the second quarter ended June 30, 2004 were $127.0 million
compared to $154.3 million reported for the second quarter ended June 30, 2003.
Net income for the second quarter ended June 30, 2004 was $5.0 million, or $0.62
per basic and $0.61 per diluted share, compared to $4.1 million, or $0.51 per
basic and diluted share, reported for the second quarter last year.
Net sales for the six months ended June 30, 2004 were $255.6 million, compared
to $291.4 million reported for the first six months ended June 30, 2003.
Net income for the six months ended June 30, 2004 was $5.6 million, or $0.69 per
basic and diluted share, compared to $4.6 million, or $0.57 per basic and
diluted share, reported for the six months last year.
The planned elimination of unprofitable circular mailings and a reduction in
Crossing Pointe mailings resulted in a decrease in sales for the second quarter
of 2004. Blair expects to discontinue circulation of its 4-year-old Crossing
Pointe catalog title in early 2005. The increase in net income for the quarter
reflects enhanced efficiencies of core operations and Blair's focus on
profitability and enhancing shareholder value.
Cost of goods sold as a percentage of net sales for the second quarter of 2004
was 45.9% compared to 47.1% for the second quarter of 2003, reflecting reduced
customer returns, and successful efforts to lower overall shipping and
liquidation costs.
Blair's e-commerce channel generated $45.6 million in gross sales demand in the
first six months of 2004, compared to $41.7 million in the first six months of
2003.
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"Second quarter results reflect Blair's successful efforts to focus on
profitability and cost efficiencies which were achieved through our enhanced
fulfillment operation and focused advertising initiatives. As a result, Blair
was able to realize higher margins in per customer sales and reduce overall
shipping costs for the quarter," said Bryan J. Flanagan, Senior Vice President
and Chief Financial Officer.
"Our core customers have consistently remained the cornerstone of Blair's
historic success and we will continue to focus on meeting their specific needs
as part of our long-term plan to increase profitability," concluded Mr.
Flanagan.
John E. Zawacki, President and CEO said, "I am pleased that our initiatives to
improve profitability have contributed to Blair's overall performance for the
second quarter and reaffirm our long-term strategy to focus our product
offerings to our core customers."
"Blair's balance sheet remains strong, and we expect that Blair's core
businesses will continue to be the primary driver of the Company's profitability
and value creation. We remain confident that our efforts to enhance
profitability will result in greater shareholder value, " concluded Mr. Zawacki.
ABOUT BLAIR
Headquartered in Warren, Pennsylvania, Blair Corporation sells a broad range of
women's and men's apparel and home products through direct mail marketing and
its Web sites www.blair.com and www.crossingpointe.com. Blair Corporation
employs over 2,500 people and operates facilities and retail outlets in
Northwestern Pennsylvania as well as a catalog outlet 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 certain statements, including without limitation,
statements containing the words "believe," "plan," "expect," "anticipate," and
words of similar import 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.
--Financial table follows--
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BLAIR CORPORATION
COMPARATIVE OPERATING HIGHLIGHTS
(UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
For the Three Months Ended June 30
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2004 2003
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Net sales $126,993 $ 154,345
Income before income taxes 8,087 6,633
Income taxes 3,076 2,532
Net income 5,011 4,101
Basic / diluted earnings per share $0.62 / $0.61 $0.51 / $0.51
Weighted average basic shares outstanding 8,092,034 8,056,104
Weighted average diluted shares outstanding 8,166,940 8,079,211
For the Six Months Ended June 30
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2004 2003
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Net sales $255,635 $291,358
Income before income taxes 9,007 7,427
Income taxes 3,425 2,826
Net income 5,582 4,601
Basic / diluted earnings per share $0.69 / $0.69 $0.57 / $ 0.57
Weighted average basic shares outstanding 8,071,579 8,050,201
Weighted average diluted shares outstanding 8,139,561 8,077,447
SELECTED BALANCE SHEET ITEMS AS OF JUNE 30
2004 2003
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Customer accounts receivable $146,289 $146,702
Inventories $ 76,136 $ 64,208
Total assets $339,298 $327,022
Total liabilities $ 64,872 $ 66,936
Stockholders' equity $274,426 $260,086
Total liabilities and stockholders' equity $339,298 $327,022