<PAGE>
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
JUNE 4, 1997
------------
Date of Report (Date of earliest event reported)
FACTORY CARD OUTLET CORP.
-------------------------
(Exact name of registrant as specified in its charter)
Delaware 21859 36-3652087
- --------------------------------------------------------------------------------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
745 BIRGINAL DRIVE, BENSENVILLE, ILLINOIS 60106
------------------------------------------------
(address of principal executive offices) (Zip Code)
(630) 238-0010
--------------
(Registrant's telephone number)
<PAGE>
ITEM 5. OTHER EVENTS.
On June 4, 1997, Factory Card Outlet Corp. (the "Registrant") announced
that it is revising its performance expectations for the fourth quarter and year
ended June 28, 1997.
A copy of the Registrant's press release, dated June 4, 1997, is attached
hereto as Exhibit 99.1 and is incorporated by reference herein.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
EXHIBIT NO. DESCRIPTION
99.1 Press Reolease of Factory Card Outlet Corp. issued June 4, 1997.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this repoort to be signed on its behalf by the
undersigned hereunto duly authorized.
FACTORY CARD OUTLET CORP.
______________________________________
Charles R. Cumello
Dated: June 4, 1997 President
<PAGE>
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
99.1 Press Release of Factory Card Outlet Corp. issued June 4, 1997
<PAGE>
Exhibit 99.1
Contact: Investors Media
Thomas W. Stoltz Jim Fingeroth
Vice President,Finance Roanne Kulakoff
Factory Card Outlet Kekst and Company
(630) 238-0010 (212) 521-4800
FOR IMMEDIATE RELEASE
FACTORY CARD OUTLET
REVISES PERFORMANCE EXPECTATIONS
BENSENVILLE, IL JUNE 4, 1997 --- Factory Card Outlet (NASDAQ: FCPY) today
announced that it is revising its performance expectations for the fourth
quarter and year ended June 28, 1997.
The Company said it expects to report sales for the quarter in a range of $39
to $40 million compared to $31 million for the same period last year. However,
this range of estimated sales is lower than the Company's planned sales of
approximately $43 million for the quarter. As a result, Factory Card Outlet
said its earnings for the quarter and year are likely to be below current Wall
Street expectations.
The Company said it now believes its earnings for the quarter will be in the
range of $0.22 to $0.25 per share, compared with consensus analyst estimates of
$0.34 per share. The Company said actual earnings will depend primarily on
sales during the balance of June and the level of inventory shrinkage. For the
revised earnings estimate for the quarter and year, inventory shrinkage is being
reserved at 3.5% compared to last year's actual inventory shrinkage of 2.0%.
The Company also said its gross margin percent and selling, general and
administartive expenses are estimated to be on plan for the quarter.
For the year, the Company currently expects that earnings will be in the range
of $0.18 to $0.22 per share, compared with the consensus analyst estimate of
$0.33 per share. These results would represent a significant increase in
earnings for the Company, which had earnings of $0.01 per share last year.
Charles R. Cumello, President and Chief Executive Officer, said, "We can trace
the sales shortfall to three factors which affected our April-May results.
First, we moved up one week earlier than last year two direct mail advertising
circulars in an attempt to spur earlier sales and traffic, but this had the
effect of negatively impacting both our Mothers' Day and Memorial Day business.
Second, while the Company has successfully opened all of its planned stores for
the year, sales during April and May were reduced by approximately $500,000 due
to some stores opening later than planned. Lastly, there were some merchandise
issues which resulted in loss of sales in certain categories. These issues have
been identified and are in the process of being corrected.
<PAGE>
DRAFT NEWS RELEASE/JUNE 4, 1997
PAGE TWO
"While this will affect current quarter earnings, it is important to understand
that these are correctable issues, and Factory Card Outlet's business remains
fundamentally strong and our growth plan on track. The Company completed its
fiscal 1997 store opening program with the opening of its 140th store in
Williamsville, New York on May 8, 1997, and also completed the implementation of
its chain-wide point-of-sales system in April, 1997."
This press release regarding the quarterly results of Factory Card Outlet Corp.
includes forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. Forward-looking statements do not constitute
historical facts and involve risks and uncertainties, including, but not limited
to, the possibility that adverse economic or other factors may cause actual
results to be materially different than current estimates and projections.
Additional detailed information concerning a number of factors that could cause
actual results to differ materially from the information contained in this press
release is readily available in the Company's Registration Statement on Form S-1
dated December 12, 1996 starting with the section on RISK FACTORS. Copies of
this Registration Statement are available on request directed to the President
of the Company.
Factory Card Outlet is a rapidly growing chain of company-owned superstores
offering a vast assortment of party supplies, greeting cards, gift wrap and
other special occasion merchandise at everyday value prices. As of June 4,
1997, the company currently operates 140 stores in 18 states primarily in
Midwest and the mid-Atlantic regions of the U.S.
