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 recorded) Nov. 13, 1997
CPI CORP.
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(exact name of registrant as specified in its charter)
Delaware 0-11227 43-1256674
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(State or other jurisdiction (Commission file (IRS Employer
of incorporation) Number) Identification No.)
1706 Washington Avenue, St. Louis, Missouri 63103-1790
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(Address of principal executive offices) (Zip code)
Registrants's telephone number including area code: (314)231-1575
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(Former name or former address, if changes since last report.)
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ITEM 5. OTHER ITEMS
On November 13, 1997, CPI Corp. issued the following press
release announcing that 3rd quarter portrait studio sales were
lower than expected:
CPI CORP. SAYS 3rd QUARTER PORTRAIT STUDIO SALES LOWER THAN
EXPECTED.
ST. LOUIS, MO., November 13, 1997 - CPI Corp. (NYSE-CPY)
said today that the increased level of customer activity
in its portrait studios that began with the post-Easter
period and continued throughout the second quarter has
declined in recent weeks to the extent that third quarter
sales in the division will fall short of prior expectations.
In making the announcement, Alyn V. Essman, chairman and
chief executive officer said, "In our second quarter
conference call, we stated that we did not expect to see
sales increases continue through the remainder of the year
on the order of the near 10% growth we were experiencing
during the second quarter. It now appears that third
quarter sales will be slightly below those of last year's
comparable period. Although the average transaction remains
strong through the very latest reports, customer traffic in
the studios fell off starting after Labor Day. On a
positive note, however, it appears that portrait studio
operating earnings will show an increase due to higher
operating margins."
Continuing, Essman said, "The sale of the remaining 49%
interest in the Fox Photo joint venture to Eastman Kodak
Company will result in a third quarter $2.7 million after-
tax charge, which will be partially offset in the forth
quarter by a $1.4 million after-tax gain related primarily
to the amortization of the non-compete agreement. This
contrasts with last year's third quarter $3.9 million
after-tax gain on the sale of the initial 51% interest in
the venture to Kodak."
The company did not provide information regarding other
operating numbers. Full discussion of operations will be
provided by management in a conference call following the
third quarter earnings release, scheduled for Friday,
December 5, 1997.
CPI is a consumer services company with $467.0 million in
fiscal 1996 sales from continuing operations, operating
approximately 1,200 retail locations, including 1,030
Sears Portrait Studios in the U.S., Puerto Rico and Canada
and 156 Prints Plus wall decor stores.
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SIGNATURE
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 thereunto duly authorized.
CPI CORP.
(Registrant)
/s/ Barry Arthur
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Barry Arthur
Authorized Officer and
Principal Financial Officer
Dated: November 14, 1997
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