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) March 26, 1999
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' 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 EVENTS
A. On March 26, 1999, CPI Corp. issued the following press
release:
CPI CORP. EXPECTS FY 1998 SALES AND EARNINGS TO EXCEED MOST
RECENT ESTIMATES
ST. LOUIS, MO, March 26, 1999--CPI Corp. (NYSE-CPY) today said
unaudited results from the fourth quarter and the full 1998
fiscal year, which ended February 6, 1999, were better than
expected.
In making the announcement, Alyn V. Essman, chairman and
chief executive officer said, "Unaudited results indicate
sales for the 52 weeks of fiscal 1998 for the Portrait
Studio segment will be up approximately 7.2% to $325.5
million versus last year's $303.7 million reported for the
53 weeks of fiscal 1997. On a comparable 52-week basis, the
unaudited sales increase for the Portrait Studio segment is
8.6% for fiscal 1998. Further, unaudited sales for the Wall
Decor segment are also up marginally in 1998 compared to
1997. When stated on a comparable 52-week basis, the sales
increase for the Wall Decor segment is 2.2% for fiscal 1998."
Turning to operating earnings, Essman said, "While we
previously estimated full-year Portrait Studio operating
earnings to be lower in fiscal 1998 than in fiscal 1997,
unaudited operating earnings for 1998 for the Portrait Studio
segment are relatively unchanged, while the Wall Decor
segment shows significant improvement."
Continuing, Essman said, "Unaudited diluted net earnings per
share are $2.15 for 1998 versus $1.07 reported last year.
Though there was improvement in unaudited operating earnings
in 1998, the major difference in earnings year-to-year will
be due to the absence of losses reported for 1997 from the
photofinishing segment and larger benefits recognized in 1998
in connection with the sale of that business."
Commenting on early 1999 results, Essman said, "We are happy
to see Portrait Studio segment sales are continuing the
strength they displayed in the second half of 1998. Sales
for the first six weeks of fiscal year 1999 are up
approximately 13% over the same six weeks of fiscal year
1998, even better than the 11.7% increase sustained for
the final 28 comparable weeks of fiscal year 1998 over 1997.
Fiscal year 1999 will still bear substantial cost increases
for employee training and continuing technological
development, but the anticipated sales increase helps to
cover those costs. Once the expense loads level out in
fiscal year 2000, sales strength should improve overall
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profitability."
A news release providing audited fiscal 1998 results,
including operating segment details, is presently scheduled
for April 9, 1999.
The statements contained in this report, which are not
historical facts, are forward-looking statements that involve
risks and uncertainties. Management wishes to caution
the reader that these forward-looking statements, such as the
CPI Corp.'s (the "Company's") outlook for the Portrait Studio
and Wall Decor segments, are not predictions; actual events
or results may differ materially as a result of risks facing
the Company. Such risks include, but are not limited to, the
Company's ongoing ability to develop and introduce attractive
new products, the overall level of economic activity in
the Company's major markets, the effectiveness of marketing
activities of major competitors, manufacturing interruptions,
dependence on certain suppliers, fluctuations in operating
results, the attraction and retention of qualified personnel,
Year 2000 compliance issues and other risks as may be
described in the Company's filings with the Securities and
Exchange Commission, including its Form 10-K for the year
ended February 7, 1998.
CPI Corp. is a consumer services company operating
approximately 1,200 retail locations, including 1,027 Sears
Portrait Studios in the U.S., Puerto Rico and Canada and 152
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: April 7, 1999
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