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 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
(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)
Blair-2
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 April 23, 2004 Blair Corporation issued a press release announcing
its earnings for the three months ended March 31, 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: April 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
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 FIRST QUARTER RESULTS
WARREN, Pa., (April 23, 2004) -- Blair Corporation (Amex: BL), (www.blair.com),
a national multi-channel direct marketer of women's and men's apparel and home
products, today announced results for the first quarter ended March 31, 2004.
Net sales for the first quarter ended March 31, 2004 were $128.6 million
compared to $137.0 million reported for the first quarter ended March 31, 2003.
Net income for the first quarter ended March 31, 2004 was $571,000, or $.07 per
basic and diluted share, compared to net income of $500,000, or $.06 per basic
and diluted share, reported for the first quarter last year.
Cost of goods sold as a percentage of net sales for the first quarter of 2004
was 49.4%, which is comparable to the 49.5% for the first quarter of 2003.
Advertising expenses for the quarter decreased to $35.4 million from $38.6
million for the comparable period last year.
General & administrative costs rose 7% or $2.2 million and included costs
associated with an engagement of McKinsey & Company, a national marketing and
strategy consulting firm retained to assist Blair in conducting a comprehensive
consumer, brand and strategy study aimed at enhancing shareholder value.
Blair's e-commerce channel generated $24 million in gross sales demand in the
first quarter of 2004, compared to $18.9 million in the first quarter of 2003,
an increase of 27%.
"We stated in our fourth quarter earnings announcement in February that results
for the first quarter of 2004 may have been lower than the first quarter of
2003. It is important to note that our core Blair business outperformed initial
expectations for the first quarter putting total Company profitability slightly
ahead of last year. These favorable financial results were achieved despite the
adverse impact of losses associated with the Company's Crossing Pointe business,
start up costs associated with Allegheny Trail Corp., Blair's wholesale business
targeting outdoor sporting goods and recreational retailers, and the re-launch
of our Irvine Park catalog aimed at a younger, more affluent Menswear customer,"
said Bryan J. Flanagan, Senior Vice President and Chief Financial Officer.
"First quarter results also reflect the success of Blair's strategic decision to
focus on more targeted mailings for greater efficiency and optimized returns. In
addition, results benefited from the enhancement of Blair's automated
fulfillment capabilities which continue to contribute to an overall improvement
in operating efficiencies and productivity while driving a reduction in
backlog," noted Mr. Flanagan.
John E. Zawacki, President and CEO said, "I am pleased with Blair's overall
performance for the first quarter and the financial contribution of our core
product offerings. 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 the near-term initiatives undertaken to improve inventory
management, drive sales and enhance profitability will result in greater
shareholder value."
"Blair's balance sheet remains strong, and we are expanding our customer base
and enhancing our leadership position as the premier direct marketer to
value-conscious consumers," 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 $580 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--
BLAIR CORPORATION
COMPARATIVE OPERATING HIGHLIGHTS
(UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
For the Three Months Ended March 31
2004 2003
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Net sales $128,642 $137,014
Income before income taxes 920 794
Income taxes 349 294
Net income 571 500
Basic / diluted earnings per share $.07/$.07 $.06/$.06
Weighted average basic shares outstanding 8,051,124 7,981,649
Weighted average diluted shares outstanding 8,112,181 8,013,070
Selected Balance Sheet Items as of March 31
2004 2003
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Customer accounts receivable $148,762 $146,269
Inventories $ 79,827 $ 77,620
Total assets $334,777 $335,931
Total liabilities $ 65,991 $ 78,998
Stockholders' equity $268,786 $256,933
Total liabilities and stockholders' equity $334,777 $335,931