SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Form 10-Q
QUARTERLY REPORT UNDER SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTER ENDED November 29, 1998 COMMISSION FILE NUMBER 1-5960
CONCORD FABRICS INC.
(Exact name of Registrant as specified in its charter)
DELAWARE 13-5673758
(State or other jurisdiction of (I. R. S. Employer
incorporation or organization) Identification No.)
1359 Broadway, New York, New York 10018
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 760-0300
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period
that the Registrant was required to file such reports) and (2) has been
subject to such filing requirements for the past 90 days. Yes X No .
2,213,972 shares of Registrant's Class A Common Stock, par value $.50
per share and 1,446,451 shares of Registrant's Class B Common Stock, par
value $.50 per share were outstanding as of December 29, 1998.
1 of 16 <PAGE>
CONCORD FABRICS INC. AND SUBSIDIARIES
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED NOVEMBER 29, 1998
INDEX Page Number
PART I. Financial Information
Item 1. Financial Statements
Consolidated Statements of Income -
Thirteen Weeks Ended November 29, 1998
(Unaudited) and November 30, 1997 (Unaudited) 3
Consolidated Balance Sheets - November 29, 1998
(Unaudited), August 30, 1998 (Derived
from Audited Financial Statements) and
November 30, 1997 (Unaudited) 4-5
Consolidated Statements of Changes in
Stockholders' Equity (Unaudited for the period
August 30, 1998 to November 29, 1998) 6
Consolidated Statements of Cash Flows -
Thirteen Weeks Ended November 29, 1998
(Unaudited) and November 30, 1997 (Unaudited) 7
Notes to Consolidated Financial Statements
(Unaudited) 8-12
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of
Operations 13-14
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K 15
Signature Page 16
2 of 16<PAGE>
Item 1. Financial Statements
--------------------
CONCORD FABRICS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Note A)
For the Thirteen Weeks Ended
----------------------------
November 29, November 30,
1998 1997
------------ ------------
Net Sales ................................. $22,596,600 $24,750,402
----------- -----------
Cost of Sales ............................. 15,473,097 17,081,341
Merchandising Expenses .................... 1,700,280 1,872,485
Selling and Shipping Expenses ............. 1,990,683 1,892,306
General and Administrative Expenses ....... 2,349,998 2,399,635
Interest Expense (Net) .................... 185,487 174,041
----------- -----------
Total ............................... $21,699,545 $23,419,808
----------- -----------
Earnings before income taxes .............. 897,055 1,330,594
Income tax provision ...................... 375,000 535,000
----------- -----------
Net Earnings .............................. $ 522,055 $ 795,594
=========== ===========
Basic Earnings Per Share .................. $.14 $.22
=========== ===========
Diluted Earnings Per Share ................ $.14 $.21
=========== ===========
Weighted average shares used in computing
basic earnings per share ............... 3,682,526 3,665,107
=========== ===========
Weighted average shares used in computing
diluted earnings per share ............. 3,766,520 3,799,057
=========== ===========
Dividend per Common Share ................. NONE NONE
=========== ===========
The attached notes are made a part hereof.
3 of 16<PAGE>
CONCORD FABRICS INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Note A)
August 30,
1998
(Derived from
November 29, Audited November 30,
1998 Financial 1997
A S S E T S (Unaudited) Statements) (Unaudited)
- ----------- ------------ ------------ ------------
Current Assets:
Cash and cash equivalents ..... $11,574,993 $ 8,678,053 $11,734,313
Held to maturity investments
(at cost) .................. 9,939,625 14,593,225 10,854,833
Accounts receivable (less
allowance for doubtful accounts
of $1,472,000 on November 29,
1998, $1,350,000 on August 30,
1998, and $1,501,000 on
November 30, 1997) ......... 18,032,087 18,003,495 18,605,931
Inventories (Note B) .......... 18,971,743 16,015,819 17,168,452
Prepaid and refundable income
taxes ...................... -0- -0- 255,000
Prepaid expenses and other
current assets .............. 1,184,509 1,289,839 1,025,406
Deferred income taxes ......... 1,866,000 1,935,000 1,666,000
------------ ----------- -----------
Total Current Assets .......... $61,568,957 $60,515,431 $61,309,935
Property, plant and equipment
(at cost, less accumulated
depreciation and amortization of
$7,988,683 on November 29,
1998, $7,538,169 on August 30,
1998, and $6,745,539 on
November 30, 1997) ............ 9,808,869 9,159,596 7,371,463
Property and plant leased to others -0- 1,737,052 1,851,172
Property, plant, & equipment held for
sale - at estimated disposal value
(Notes H & I) ................. 2,992,331 1,352,319 1,904,434
Other assets ..................... 2,902,171 3,119,732 2,950,057
----------- ----------- -----------
T O T A L .................. $77,272,328 $75,884,130 $75,387,061
=========== =========== ===========
The attached notes are made a part hereof. 4 of 16 <PAGE>
CONCORD FABRICS INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Note A)
August 30,
1998
(Derived from
November 29, Audited November 30,
1998 Financial 1997
L I A B I L I T I E S (Unaudited) Statements) (Unaudited)
- --------------------- ------------ ------------ ------------
Current Liabilities:
Current portion of notes payable
insurance company (Note D) . $ 2,850,000 $ 2,850,000 $ -0-
Accounts payable .............. 5,496,385 4,608,507 5,995,428
Accrued expenses and taxes .... 2,965,451 3,298,883 2,883,627
Income taxes payable .......... 434,000 59,000 432,000
----------- ----------- -----------
Total Current Liabilities ..... $11,745,836 $10,816,390 $ 9,311,055
Notes payable - insurance
company (Note D) .............. 17,150,000 17,150,000 20,000,000
Deferred income taxes ............ 288,000 288,000 550,000
Other liabilities ................ 574,249 556,249 502,249
----------- ----------- -----------
Total Liabilities ............. $29,758,085 $28,810,639 $30,363,304
Commitments and contingencies ----------- ----------- -----------
(Notes B and C)
S T O C K H O L D E R S ' E Q U I T Y
- --------------------------------------
Common stock: (Notes E & F)
Class A - $.50 par value
authorized 4,000,000 shares,
issued 2,238,656 shares at
November 29, 1998, 2,237,656
shares at August 30, 1998
and 2,216,356 shares at
November 30, 1997 .......... 1,119,328 1,118,828 1,108,178
Class B - $.50 par value
authorized 4,000,000 shares,
issued 1,446,451 shares at
November 29, 1998, 1,447,451
shares at August 30, 1998
and 1,448,751 shares at
November 30, 1997 .......... 723,226 723,726 724,376
Additional paid-in capital ....... 9,274,561 9,274,561 9,192,061
Retained earnings ................ 36,478,431 35,956,376 33,999,142
Treasury stock at cost
12,503 shares (Note J) ........ (81,303) -0- -0-
----------- ----------- -----------
Total Stockholders' Equity .... $47,514,243 $47,073,491 $45,023,757
----------- ----------- -----------
T O T A L .................. $77,272,328 $75,884,130 $75,387,061
=========== =========== ===========
The attached notes are made a part hereof. 5 of 16
<TABLE>
<CAPTION> CONCORD FABRICS INC.
CONSOLIDATED STATEMENTS OF CHANGES
IN STOCKHOLDERS' EQUITY
Class A Common Stock Class B Common Stock Additional Retained Total
Number Dollar Number Dollar Paid-in Earnings Stockhold-
of Shares Value of Shares Value Capital ers' Equity
-------------------- ------------------ ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
September 1, 1996 2,146,956 $1,073,478 1,509,401 $754,701 $9,166,123 $29,844,823 $40,839,125
Net Earnings 3,358,725 3,358,725
Conversion from
Class B shares
to Class A
shares 53,300 26,650 (53,300) (26,650)
Exercise of stock
options 8,750 4,375 25,938 30,313
-------------------- ------------------ ---------- ----------- -----------
August 31, 1997 2,209,006 1,104,503 1,456,101 728,051 9,192,061 33,203,548 44,228,163
Net Earnings 2,752,828 2,752,828
Conversion from
Class B shares
to Class A
shares 8,650 4,325 (8,650) (4,325)
Exercise of stock
options 20,000 10,000 82,500 92,500
-------------------- ------------------ ---------- ----------- -----------
August 30, 1998 2,237,656 1,118,828 1,447,451 723,726 9,274,561 35,956,376 47,073,491
Net Earnings 522,055 522,055
Conversion from
Class B shares
to Class A
shares 1,000 500 (1,000) (500)
-------------------- ------------------ ---------- ----------- -----------
Balance 2,238,656 $1,119,328 1,446,451 $723,226 $9,274,561 $36,478,431 $47,595,546
-------------------- ------------------ ---------- -----------
Less purchase of Treasury Stock
in Fiscal 1999 (81,303)
-----------
November 29, 1998 $47,514,243
===========
The data reflecting Changes in Stockholders' Equity for the period August 30, 1998 to November
29, 1998 is unaudited.
The attached notes are made a part hereof.
</TABLE>
6 of 16
<TABLE>
<CAPTION> CONCORD FABRICS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Note A)
For the Thirteen Weeks Ended
--------------------------------
November 29, November 30,
1998 1997
------------ ------------
<S> <C> <C>
Cash flows from operating activities:
Net earnings .................................... $ 522,055 $ 795,594
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Depreciation and amortization ............. 329,398 383,410
Deferred income taxes ..................... 69,000 107,000
Provision for doubtful accounts ........... 119,997 148,649
Changes in assets:
Decrease (increase) in:
Accounts receivable ................. (148,589) 2,557,397
Inventories ......................... (2,955,924) (4,264,550)
Prepaid expenses and other
current assets .................... 105,330 391,433
Other assets ........................ 217,561 255,088
Changes in liabilities:
Increase (decrease) in:
Accounts payable .................... 887,878 1,702,221
Accrued expenses and taxes .......... (333,432) (594,860)
Income taxes payable ................ 375,000 432,000
Other liabilities ................... 18,000 18,000
------------ ------------
Net cash provided by (used in) operating activities (793,726) 1,931,382
------------ ------------
Cash flows from investing activity:
Proceeds from sales of held to maturity
securities ................................... 14,593,225 4,667,925
Purchases of held to maturity securities ........ (9,939,625) (2,000,000)
Purchases of property, plant, and equipment ..... (940,631) (278,573)
Proceeds from sale of machinery and equipment ... 59,000 32,535
Repurchase of Class A Common Stock at cost ...... (81,303) -0-
------------ ------------
Net cash provided by investing activities ....... 3,690,666 2,421,887
NET INCREASE IN CASH AND CASH EQUIVALENTS .......... 2,896,940 4,353,269
------------ ------------
Cash and cash equivalents - beginning of period .... 8,678,053 7,381,044
------------ ------------
CASH AND CASH EQUIVALENTS - END OF PERIOD .......... $11,574,993 $11,734,313
============ ============
Supplemental Information:
Cash Paid for:
Interest ...................................... 931,000 931,000
Income taxes .................................. 97,000 3,000
The attached notes are made a part hereof.
</TABLE>
7 of 16 <PAGE>
CONCORD FABRICS INC. AND SUBSIDIARIES
NOTES TO FORM 10-Q
AS AT NOVEMBER 29, 1998
(Unaudited)
Note A
The accompanying unaudited consolidated financial statements have been
prepared in accordance with the instructions to Form 10-Q. Accordingly, they
do not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. In the
opinion of management, all adjustments of a normal recurring nature
considered necessary for a fair presentation have been included. Operating
results for the thirteen weeks ended November 29, 1998 are not necessarily
indicative of the results that may be expected for the fiscal year ending
August 29, 1999. These statements should be read in conjunction with the
financial statements and notes thereto included in the Company's annual
report to shareholders and Form 10-K for the fiscal year ended August 30,
1998.
Note B - Inventories:
Inventories are summarized by as follows:
November 29, August 30, November 30,
1998 1998 1997
------------ ----------- ------------
Finished goods......... $10,703,063 $ 8,844,722 $ 9,270,180
Work-in-process........ 2,376,339 2,596,291 3,735,099
Greige goods and yarn.. 5,892,341 4,574,806 4,163,173
------------ ----------- ------------
Total............... $18,971,743 $16,015,819 $17,168,452
============ =========== ============
The foregoing inventory amounts at November 29, 1998 and November 30, 1997
were derived from perpetual inventory records maintained by the Company.
At November 29, 1998, the Company had outstanding commitments to purchase
greige goods aggregating $1,000,000.
Note C - Notes Payable - Banks:
At November 29, 1998, the Company was free of bank debt and had total unused
bank lines of credit aggregating $20,000,000.
The Company had approximately $198,000 of letters of credit outstanding as at
November 29, 1998.
Note D - Notes Payable - Insurance Company:
On November 30, 1994, the Company obtained a $20,000,000 loan from John
8 of 16<PAGE>
CONCORD FABRICS INC. AND SUBSIDIARIES
NOTES TO FORM 10-Q
AS AT NOVEMBER 29, 1998
(Unaudited)
Continued
Hancock Mutual Life Insurance Company. This unsecured loan bears interest at
9.31% a per annum and is repayable in seven equal annual installments
commencing on November 30, 1998. The first annual installment of $2,850,000
was paid on November 30, 1998, subsequent to the end of the first quarter.
The loan agreement requires maintenance of certain financial ratios and
maintenance of tangible net worth of approximately $39,953,000. The
agreement also prohibits the pledging of assets and restricts dividends and
redemptions of capital stock to $3,000,000 plus 50% of net earnings
subsequent to August 28, 1994; the cumulative amount available for such
payments aggregated approximately $6,023,000 at November 29, 1998.
Note E - Common Stock:
The Class A and Class B shares principally differ as follows:
(1) The Class A shares have a 15% dividend preference and a 10% liquidation
preference with respect to the Class B shares.
(2) Holders of Class A shares are entitled to one vote a share whereas
holders of Class B shares are entitled to ten votes a share.
(3) Holders of Class A shares voting as a separate class are entitled to
elect 25% of the Company's directors and holders of Class A shares and Class
B shares voting together are entitled to elect the remaining directors.
(4) Class B shares are convertible into Class A shares on the basis of one
share of Class A shares for each share of Class B shares; Class A shares
have no conversion rights.
Note F - Stock Options:
Pursuant to an Incentive Program adopted on January 10, 1989, and amended on
December 4, 1996, awards (as defined) may be granted to key employees and
directors of the Company up to a maximum of 500,000 shares of the Company's
Class A common stock.
On January 10, 1989, options to purchase an aggregate of 150,000 shares of
the Company's Class A common stock at $3 a share (fair market value at such
date) were granted to three employees. The options are fully exercisable and
expire ten years from the date of grant.
9 of 16
<PAGE>
CONCORD FABRICS INC. AND SUBSIDIARIES
NOTES TO FORM 10-Q
AS AT NOVEMBER 29, 1998
(Unaudited)
Continued
On January 9, 1996, options to purchase an aggregate of 200,000 shares of the
Company's Class A common stock at $4.625 a share (fair market value at such
date) were granted to two employees. The options are exercisable in four
annual installments commencing January 9, 1997 and expire ten years from the
date of the grant.
On January 9, 1996 options to purchase 5,000 shares of the Company's Class A
common stock at $4.625 (fair market value at such date) were granted to two
outside directors. On September 2, 1996, options to purchase an additional
5,000 shares of the Company's Class A common stock at $6.625 (fair market
value at such date) were granted to those directors.
On January 14, 1997, the Company granted an option to the Chairman of the
Board of Directors to purchase an aggregate of 70,000 shares of the Company's
Class A common stock at $7.0125 a share (110% of the fair market value at
such date). This option is exercisable in five annual installments
commencing January 14, 1998, and expires five years from the date of grant;
the Chairman was also granted an option to purchase 30,000 shares of the
Company's Class A common stock at $6.375 a share. This option is exercisable
in five annual installments commencing January 14, 1998 and expires ten years
from the date of grant.
On January 13, 1998 options to purchase 7,500 shares of the Company's Class A
common stock at $8.875 (fair market value at such date) were granted to three
outside directors. The options are exercisable January 13, 1999 and expire
five years from the date of grant.
On November 10, 1998 options to purchase 30,000 shares of the Company's Class
A common stock at $6.50 (fair market value at such date) were granted to
three outside directors (10,000 shares each). The options are exercisable
over a four year period commencing November 10, 1999 at 25% per year and
expire five years from the date of grant.
The Company accounts for equity - based awards granted to employees and
directors under APB Opinion No. 25 under which no compensation cost has been
recognized for stock options granted at fair market value. Had compensation
cost for these stock options been determined consistent with SFAS No. 123,
the decrease in the Company's net earnings and net earnings per share would
have not been material.
Note G - Earnings Per Share:
In 1997, the Financial Accounting Standards Board issued SFAS No. 128,
"Earnings Per Share." SFAS No. 128 replaced the calculation of primary and
10 of 16<PAGE>
CONCORD FABRICS INC. AND SUBSIDIARIES
NOTES TO FORM 10-Q
AS AT NOVEMBER 29, 1998
(Unaudited)
Continued
fully diluted earnings per share with basic and diluted earnings per share.
Basic earnings per share excludes any dilutive effects of options, warrants
and convertible securities. Diluted earnings per share gives effect to all
potentially dilutive common shares that were outstanding during the period
under the Company stock option Incentive Program (Note F). All earnings per
share amounts for all periods have been presented and, where appropriate,
restated to conform to the SFAS No. 128 requirements.
Note H - Chino, California Facility:
In February 1994, the Company leased the land and building at its Chino,
California facility for a five year period at an annual net rental of
$297,000; the lessee was also granted the option to purchase the land and
building during the lease period for $2,900,000. In the first quarter of
fiscal 1999 the lessee chose not to exercise its purchase option and the
Company put the property up for sale. The property has therefore been
reclassified to property, plant, & equipment held for sale - at estimated
disposal value of $1,699,012 from property and plant leased to others.
Note I - Washington, Georgia Facility:
In the fourth quarter of fiscal 1995 the Company decided to dispose of its
Washington, Georgia dyeing and finishing plant and has been actively
searching for a buyer; manufacturing operations ceased October 6, 1995. At
such time, the Company reclassified the facility to property, plant and
equipment held for sale and estimated the net realizable value of the
facility and accrued expenses for an estimated disposition period.
In fiscal 1998, the Company reevaluated the facility and, in that connection,
recorded a charge of $500,000 reflecting the estimated impairment in value.
As of November 29, 1998 the estimated disposal value of the Washington
facility was $1,293,319. During fiscal 1997, the Company repaired the
facility's roof at a cost of $130,000 which was charged to operations.
Note J - Stock Repurchase:
In September, 1998, the Company's Board of Directors authorized the
repurchase of up to 300,000 shares of the Company's common stock. The
repurchases were to be made at the discretion of Concord's management
depending upon financial and market conditions and in accordance with rules
11 of 16
CONCORD FABRICS INC. AND SUBSIDIARIES
NOTES TO FORM 10-Q
AS AT NOVEMBER 29, 1998
(Unaudited)
Continued
provided by the Securities and Exchange Commission and the American Stock
Exchange. At November 29, 1998, 12,503 shares had been repurchased and are
recorded at cost in the Stockholders' Equity section of the Balance Sheet as
Treasury Stock.
12 of 16<PAGE>
CONCORD FABRICS INC. AND SUBSIDIARIES
NOVEMBER 29, 1998
Item 2..........MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
OPERATIONS - Thirteen Weeks Ended November 29, 1998 Compared With Thirteen
Weeks Ended November 30, 1997.
Fabric sales decreased by 8.7%. This resulted from an 8.9% decline in yards
sold and a .2% increase in average selling price. Sales of knitted fabrics
and sales of Concord House fabrics both declined.
Gross profit margin increased from 31% in the prior period to 31.5% in the
current period. Improved gross margins on knitted fabric sales offset
slightly poorer gross margins on Concord House fabric sales.
Earnings before income taxes for the first thirteen weeks of fiscal 1999 were
$897,000 compared with $1,331,000 for the first thirteen weeks of fiscal
1998. Net earnings were $522,000 for 1999 and $796,000 for 1998. The
decline in earnings was principally due to the decline in sales. Expenses
declined by $123,000 but as a percent of sales they increased from 24.9% in
the first quarter of fiscal 1998 to 26.7% in the current period. Customer
orders for future deliveries continue at levels below those obtained in
fiscal, 1998 and it is likely that second quarter earnings will decline from
fiscal 1998 levels.
LIQUIDITY AND CAPITAL RESOURCES
During the first thirteen weeks of fiscal 1999, the Company's operations used
$794,000 cash as a result of increased inventories. Fixed assets in the
amount of $941,000 were acquired ($672,000 for plant and equipment at the
Company's Milledgeville, Georgia production facility and the balance for
furniture, fixtures and leasehold improvements in the Company's New York
office). The Company reduced its investments in held to maturity securities
by $4,654,000. The sale of machinery and equipment produced $59,000 in cash.
Repurchase of 12,503 shares of stock used $81,000. As a result, cash
increased by $2,897,000 during the period. Working capital increased by
$124,000. The Company expects it short-term cash investments, its lines of
credit and cash flow from operations to be adequate to finance operations and
meet its cash requirements for the rest of fiscal 1999.
Year 2000 Compliance
The Company believes it has taken reasonable steps in developing its Year
2000 Program. Its computer systems provide for four digits in the year field
so that data processing and reporting should not be disrupted at the
millennium. Notwithstanding this, the Company cannot be certain whether
microprocessors embedded in other equipment or Year 2000 problems of its
customers, key suppliers or service providers will be discovered and or
resolved satisfactorily before the Year 2000. The Company is requesting
13 of 16<PAGE>
CONCORD FABRICS INC. AND SUBSIDIARIES
NOVEMBER 29, 1998
Continued
Item 2..........MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
Year 2000 Compliance
information on Year 2000 issues from third parties significant to its
business.
If the Company's key suppliers, service providers, customers and other third
parties fail to adequately address their Year 2000 Problems, and there are no
alternatives available to the Company, then the Company's usual channels of
supply and distribution could be disrupted with a resulting adverse impact on
its business. The Company does not believe that the cost of its Year 2000
program will be material to its financial position or its results of
operations.
Forward Looking Statements
This report contains forward looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 and actual results could
differ materially from those contemplated by such statements. Such forward
looking statements include references to expected future results of
operations and Year 2000 issues.
14 of 16<PAGE>
CONCORD FABRICS INC. AND SUBSIDIARIES
FORM 10-Q
PART II
Item.6. Exhibits and reports on Form 8-K
(a) Exhibits - None
(b) No report on Form 8-K was filed by
the Company during the thirteen
weeks ended November 29, 1998.
15 of 16 <PAGE>
CONCORD FABRICS INC. AND SUBSIDIARIES
-------------------------------------
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, Concord
Fabrics Inc. has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CONCORD FABRICS INC.
---------------------------------
Registrant
Date: January 6, 1999 By /s/ Earl Kramer
Earl Kramer
President and Chief Executive
Officer
Date: January 6, 1999 By /s/ Martin Wolfson
Martin Wolfson
Senior Vice President-Treasurer
Chief Financial Officer
16 of 16<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FIRST QUARTER AND THIRTEEN WEEKS ENDED FORM 10-Q AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO IT.
</LEGEND>
<RESTATED>
<CIK> 0000023249
<NAME> CONCORD FABRICS INC.
<MULTIPLIER> 1
<CURRENCY> U. S. DOLLARS
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 3-MOS
<FISCAL-YEAR-END> AUG-29-1999 AUG-30-1998
<PERIOD-START> AUG-31-1998 SEP-01-1997
<PERIOD-END> NOV-29-1998 NOV-30-1997
<EXCHANGE-RATE> 1 1
<CASH> 11,574,993 11,734,313
<SECURITIES> 0 0
<RECEIVABLES> 18,032,087 18,605,931
<ALLOWANCES> 0 0
<INVENTORY> 18,971,743 17,168,452
<CURRENT-ASSETS> 61,568,957 61,309,935
<PP&E> 9,808,869 7,371,463
<DEPRECIATION> 0 0
<TOTAL-ASSETS> 77,272,328 75,387,061
<CURRENT-LIABILITIES> 11,745,836 9,311,055
<BONDS> 0 0
0 0
0 0
<COMMON> 1,842,554 1,832,554
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 77,272,328 75,387,061
<SALES> 22,596,600 24,750,402
<TOTAL-REVENUES> 22,596,600 24,750,402
<CGS> 15,473,097 17,081,341
<TOTAL-COSTS> 21,699,545 23,419,808
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 185,487 174,041
<INCOME-PRETAX> 897,055 1,330,594
<INCOME-TAX> 375,000 535,000
<INCOME-CONTINUING> 0 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 522,055 795,594
<EPS-PRIMARY> .14 .22
<EPS-DILUTED> .14 .21
</TABLE>
