SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10 - Q
X Quarterly report pursuant to Section 13 or 15(d) of the Securities
- -----
Exchange Act of 1934 for the quarterly period ended November 2, 1996 or
----------------
Transition report pursuant to Section 13 or 15(d) of the Securities
- -----
Exchange Act of 1934 for the transition period from to
---------- ----------
Commission File Number 0-7264
------
PAUL HARRIS STORES, INC.
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Indiana 35-0907402
- ---------------------------------------- ------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
6003 Guion Rd., Indianapolis, IN 46254
- ---------------------------------------- -----------------------
(Address of principal executive offices) (Zip Code)
(317) 293-3900
- -------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
Not Applicable
- -------------------------------------------------------------------------------
(Former name, address and fiscal year, if changed since last report)
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 periods 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
-------- --------
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12,13, or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.
Yes X No
-------- --------
As of November 20, 1996, 10,085,539 common shares were outstanding (including
3,013,039 shares of non-voting common stock).
1
<PAGE>
INDEX
PAUL HARRIS STORES, INC. AND SUBSIDIARIES
Page No.
Part I. FINANCIAL INFORMATION --------
Item 1. Financial Statements (unaudited)
Consolidated Balance Sheets - November 2, 1996,
February 3, 1996 and October 28, 1995 3
Consolidated Statements of Operations - For the thirteen
weeks ended November 2, 1996 and October 28, 1995 4
Consolidated Statements of Operations - For the thirty-nine
weeks ended November 2, 1996 and October 28, 1995 5
Consolidated Statements of Cash Flows - For the
thirty-nine weeks ended November 2, 1996 and October 28, 1995 6
Consolidated Statements of Shareholders' Equity
For the thirty-nine weeks ended November 2, 1996 and October 28, 1995 7
Notes to Consolidated Financial Statements 8
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 9-13
Part II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 13
2
<PAGE>
<TABLE><CAPTION>
PAUL HARRIS STORES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
UNAUDITED
(in thousands)
November 2, February 3, October 28,
1996 1996 1995
------------ ----------- -----------
<S> <C> <C> <C>
ASSETS
Current assets
Cash and cash equivalents $ 11,825 $ 19,886 $ 7,773
Merchandise inventories 31,318 17,645 31,463
Other receivables 457 539 651
Prepaid expenses 1,142 1,013 1,223
Income tax recoverable - - 1,357
------------ ----------- -----------
Total current assets 44,742 39,083 42,467
------------ ----------- -----------
Property, fixtures and equipment
Land, building and improvements 5,784 5,715 5,715
Store fixtures and equipment 12,907 11,575 10,822
Leasehold improvements and other 12,313 11,389 11,126
------------ ----------- -----------
31,004 28,679 27,663
Less accumulated depreciation and amortization (12,821) (10,785) (9,180)
------------ ----------- -----------
Property, fixtures and equipment, net 18,183 17,894 18,483
Other assets 819 873 1,051
------------ ----------- -----------
$ 63,744 $ 57,850 $ 62,001
============ =========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 10,903 $ 6,012 $ 12,975
Compensation and related taxes 2,742 778 731
Income taxes payable 186 45 113
Other accrued expenses 4,546 3,447 3,697
Current maturities of long-term debt 4,320 4,320 4,320
------------ ----------- -----------
Total current liabilities 22,697 14,602 21,836
------------ ----------- -----------
Long-term debt 12,450 17,640 19,780
Other non-current liabilities 2,447 2,704 3,070
Shareholders' equity
Preferred stock (no par value)
Authorized 1,000 shares; none issued
Common stock (no par value)
Authorized 20,000 shares; issued and outstanding
10,067, 10,019 and 10,019 respectively 1,804 1,716 1,716
Additional paid-in capital 6,124 4,989 3,637
Retained earnings 18,222 16,199 11,962
------------ ----------- -----------
Total shareholders' equity 26,150 22,904 17,315
------------ ----------- -----------
$ 63,744 $ 57,850 $ 62,001
============ =========== ===========
See accompanying "Notes To Consolidated Financial Statements".
3
/TABLE
<PAGE>
<TABLE><CAPTION>
PAUL HARRIS STORES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
(in thousands, except per share data)
For the For the
thirteen thirteen
weeks ended weeks ended
November 2, October 28,
1996 1995
--------------- ---------------
<S> <C> <C>
Net sales $ 45,413 $ 36,880
Cost of sales, including occupancy expenses
exclusive of depreciation 27,339 25,246
--------------- ---------------
Gross income 18,074 11,634
Selling, general and administrative expenses 13,852 11,267
Depreciation and amortization 795 809
Interest expense, net 369 554
--------------- ---------------
Income (loss) before income taxes 3,058 (996)
Provision (credit) for income taxes 1,237 (384)
--------------- ---------------
Net income (loss) $ 1,821 $ (612)
=============== ===============
Net income (loss) per common share $ .17 $ (.06)
=============== ===============
Weighted average number of shares and
share equivalents outstanding 10,704 10,009
=============== ===============
See accompanying "Notes To Consolidated Financial Statements".
4
/TABLE
<PAGE>
<TABLE><CAPTION>
PAUL HARRIS STORES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
(in thousands, except per share data)
For the For the
thirty-nine thirty-nine
weeks ended weeks ended
November 2, October 28,
1996 1995
--------------- ---------------
<S> <C> <C>
Net sales $ 121,773 $ 108,191
Cost of sales, including occupancy expenses
exclusive of depreciation 78,312 74,656
--------------- ---------------
Gross income 43,461 33,535
Selling, general and administrative expenses 36,668 33,574
Depreciation and amortization 2,351 2,639
Interest expense, net 1,045 1,583
--------------- ---------------
Income (loss) before income taxes 3,397 (4,261)
Provision (credit) for income taxes 1,374 (1,654)
--------------- ---------------
Net income (loss) $ 2,023 $ (2,607)
=============== ===============
Net income (loss) per common share $ .19 $ (.26)
=============== ===============
Weighted average number of shares and
share equivalents outstanding 10,515 10,002
=============== ===============
See accompanying "Notes To Consolidated Financial Statements".
5
/TABLE
<PAGE>
<TABLE><CAPTION>
PAUL HARRIS STORES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED
(in thousands)
For the For the
thirty-nine thirty-nine
weeks ended weeks ended
November 2, October 28,
1996 1995
--------------- ---------------
<S> <C> <C>
Cash flow from operating activities:
Net income $ 2,023 $ (2,607)
Adjustments to reconcile earnings to cash provided:
Depreciation and amortization 2,351 2,639
Net disposal of assets 349 220
Utilization of net operating loss carryforward 1,135 -
(Increase) decrease in current assets:
Merchandise inventories (13,673) (11,896)
Other receivables 82 298
Prepaid expenses (129) (207)
Income taxes recoverable - (1,357)
Increase (decrease) in current liabilities:
Accounts payable 4,891 5,368
Compensation and related taxes 1,964 (651)
Income taxes payable 141 (303)
Other accrued expenses 1,099 (1,013)
Other 13 (28)
--------------- ---------------
Net cash flow from operating activities 246 (9,537)
--------------- ---------------
Net cash flow from investing activities:
Additions to fixed assets (3,205) (1,881)
--------------- ---------------
Cash flow from financing activities:
Repayment of long-term debt (5,190) (2,190)
Sale of common stock under stock plan 88 32
--------------- ---------------
Net cash flow from financing activities (5,102) (2,158)
--------------- ---------------
$ (8,061) $ (13,576)
=============== ===============
Cash and cash equivalents
At beginning of period $ 19,886 $ 21,349
At end of period 11,825 7,773
--------------- ---------------
$ (8,061) $ (13,576)
=============== ===============
Supplemental disclosures of cash flow information:
Cash paid during the period for interest $ 1,335 $ 2,909
=============== ===============
Cash paid during the period for income taxes $ 98 $ 5
=============== ===============
See accompanying "Notes To Consolidated Financial Statements".
6
/TABLE
<PAGE>
<TABLE><CAPTION>
PAUL HARRIS STORES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
UNAUDITED
(in thousands)
For the thirty-nine For the thirty-nine
weeks ended weeks ended
November 2, 1996 October 28, 1995
------------------- -------------------
SHARES AMOUNT SHARES AMOUNT
------- --------- ------ ---------
<S> <C> <C> <C> <C>
PREFERRED STOCK (1,000 AUTHORIZED):
COMMON STOCK (20,000 AUTHORIZED):
(16,500 voting shares; 3,500 non-voting shares)
Beginning balance 10,019 $ 1,716 9,998 $ 1,684
Exercise of stock options 48 88 21 32
------- --------- ------ ----------
Ending balance 10,067 $ 1,804 10,019 $ 1,716
ADDITIONAL PAID IN CAPITAL:
Beginning balance $ 4,989 $ 3,637
Benefit of net operating loss carryforward 1,135 -
--------- ----------
Ending balance $ 6,124 $ 3,637
========= ==========
RETAINED EARNINGS:
Beginning balance $ 16,199 $ 14,569
Net income (loss) 2,023 (2,607)
--------- ----------
Ending balance $ 18,222 $ 11,962
========= ==========
See accompanying "Notes To Consolidated Financial Statements".
7
/TABLE
<PAGE>
PAUL HARRIS STORES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation
The accompanying unaudited consolidated financial statements include the
accounts of Paul Harris Stores, Inc. and subsidiaries (the "Company"). The
Company is a specialty retailer of moderately-priced private-label apparel and
accessories for women.
The unaudited financial statements have been prepared in accordance with
instructions to Form 10-Q and Article 10 of Regulation S-X and accordingly
certain information and footnote disclosures have been condensed or omitted.
These condensed financial statements should be read in conjunction with the
financial statements and notes thereto included in the Company's Annual Report
on Form 10-K for the year ended February 3, 1996.
In the opinion of management, all adjustments (which include only normal
recurring adjustments) necessary to present fairly the financial position,
results of operations and cash flows at November 2, 1996 and for all other
periods presented have been made.
The Company's fiscal year ends on the Saturday closest to January 31. All
references in this report to fiscal years are to the calendar years within
which such fiscal years began. For example, fiscal 1995 refers to the fiscal
year that began on January 29, 1995, and ended on February 3, 1996.
The results of operations for the first three quarters of fiscal 1996 are not
necessarily indicative of the results to be expected for all of fiscal 1996.
The Company has historically produced a majority of its income in the fourth
quarter of the fiscal year due to the stronger sales experienced during the
December holiday season.
Certain amounts in the prior periods have been reclassified to conform with the
current period presentation.
2. Accounting for Stock Based Compensation
The Company has adopted Statement of Financial Accounting Standards No. 123,
"Accounting for Stock-Based Compensation" (SFAS No. 123). Management has
elected to adopt the disclosure provisions of SFAS No. 123 and remain under the
existing accounting rules for stock options as contained in APB Opinion No. 25
as they relate to the recognition of compensation expense in the Statement of
Operations. There will be no effect on the results of operations of the Company
as a result of this election under SFAS No. 123.
3. Distribution of Residual Notes and Stock
Pursuant to the Company's confirmed Plan of Reorganization (the "Plan"),
certain of the shares of Common Stock and the 11.375% Notes due January 31,
2000 (the "11.375% Notes") to be distributed under the Plan were to be
distributed upon final resolution of all claims to the holders of allowed
claims on a pro rata basis. On May 10, 1996 the Company completed the
distribution. Of the shares of Common Stock required to be distributed, 162,127
shares were issued as Non-voting Common Stock. All of the shares of Common
Stock to be distributed under the Plan have been reflected in the Company's
financial statements as issued and outstanding since the confirmation of the
Plan in 1992.
8
<PAGE>
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
Certain statements made in this report may constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance
or achievements of the Company or the retailing industry to be materially
different from any future results, performance or achievements expressed or
implied by such forward-looking statements. Such factors include, among others;
local, regional and national economic conditions; extreme or unseasonable
weather conditions; legislation and regulatory matters affecting payroll cost
or other aspects of retailing; the ability to identify and respond to emerging
fashion trends; and governmental actions such as import or trade restrictions.
Introduction
The Company is a specialty retailer of moderately-priced private-label apparel
and accessories for women. As of November 2, 1996 the Company operated a total
of 226 stores, comprised of 207 Paul Harris stores, 6 Pasta stores and 13 Paul
Harris Direct stores. At the beginning of fiscal 1996, the Company operated 18
"The $5-$10-$15-$20 Place" stores ("$5-$20 Stores") which marketed off-price
apparel, close out merchandise and regular market goods. During the first nine
months of fiscal 1996, the Company completed closing or converting to Paul
Harris and/or Paul Harris Direct stores all of the $5-$20 Stores.
The discussion of results of operations and financial condition that follows is
based upon the unaudited consolidated financial statements appearing elsewhere
in this report. The following table sets forth certain income statement items
as a percentage of net sales and certain operating data for the periods
indicated.
9
<PAGE>
<TABLE><CAPTION>
PAUL HARRIS STORES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS AS A
PERCENTAGE OF NET SALES
AND CERTAIN OPERATING DATA
(in thousands, except store data)
Thirteen weeks ended Thirty-nine weeks ended
-------------------- -----------------------
November 2,October 28, November 2,October 28,
1996 1995 1996 1995
--------------------- -----------------------
<S> <C> <C> <C> <C>
Net sales 100.0% 100.0% 100.0% 100.0%
Cost of sales, including occupancy
expenses exclusive of depreciation 60.2% 68.4% 64.3% 69.0%
------ ------ ------ ------
Gross income 39.8% 31.6% 35.7% 31.0%
Selling, general and administrative expenses 30.5% 30.6% 30.1% 31.0%
Depreciation and amortization 1.8% 2.2% 1.9% 2.4%
Interest expense, net 0.8% 1.5% 0.9% 1.5%
------ ------ ------ ------
Income (loss) before income taxes 6.7% (2.7%) 2.8% (3.9%)
Provision (credit) for income taxes 2.7% (1.0%) 1.1% (1.5%)
------ ------ ------ ------
Net income (loss) 4.0% (1.7%) 1.7% (2.4%)
====== ====== ====== =======
Stores open at end of period 226 245 226 245
====== ====== ====== =======
Comparable store sales increase (decrease) 22.0% (11.0%) 17.0% (10.0%)
====== ====== ====== =======
</TABLE>
Results of operations
Third quarter of fiscal 1996
The Company's net sales increased approximately 23% to $45,413,000 in the third
quarter of fiscal 1996 (the thirteen weeks ended November 2, 1996) from
$36,880,000 in the third quarter of fiscal 1995 (the thirteen weeks ended
October 28, 1995). The increase in net sales was primarily attributable to a
22% increase in comparable store sales. This was the third consecutive quarter
of increase in comparable store sales. In addition, new stores (stores open
less than one year) that are excluded from comparable store sales are generally
producing higher sales than the older comparable stores or stores which were
closed in the last twelve months. The average number of stores open during the
quarter was approximately 10% less in the third quarter of fiscal 1996 compared
to the third quarter of fiscal 1995. The customer count per store (number of
customers who purchase items) increased approximately 21% in the third quarter
of fiscal 1996 over the third quarter of fiscal 1995. Sales per selling square
foot increased approximately 28% for the quarter versus the same quarter a year
ago. Average sales per store increased approximately 37% for the quarter
versus a year ago.
10
<PAGE>
Gross income increased approximately 55.4% from $11,634,000 in the third
quarter of fiscal 1995 to $18,074,000 in the third quarter of fiscal 1996.
This increase was due to a decrease in the cost of goods sold and a decrease in
occupancy expenses, each as a percent of net sales. This was the fifth
consecutive quarterly improvement in gross income as a percentage of net sales.
This increase was due to lower merchandise costs resulting from a better
sourcing of goods, an increase in higher margin accessory sales, less markdowns
due to fewer promotional sales, and overall higher sales on a relatively fixed
occupancy base .
Selling, general and administrative expenses (SG&A expense) were $13,852,000
for the third quarter of fiscal 1996 as compared to $11,267,000 for the third
quarter of fiscal 1995, an increase of approximately 23%. SG&A expense as a
percentage of net sales decreased from 30.6% of net sales to 30.5%. The
accrual for bonus was approximately $1,400,000 higher in the third quarter
compared to a year ago due primarily to the Company's greater pretax income and
sales. The third quarter of fiscal 1996 exhibited a 22% comparable store sales
increase versus an 11% decrease in comparable store sales for the same period
in fiscal 1995. The other major item impacting the quarter was an increase of
approximately $440,000 in costs associated with the closing and write-off of
store assets, primarily $5-$20 Stores The Company completely closed down this
division as of November 2, 1996.
Depreciation and amortization decreased approximately 2% from $809,000 for the
third quarter of fiscal 1995 to $795,000 for the third quarter of fiscal 1996.
Interest expense, net, decreased approximately 33% from $554,000 for the third
quarter of fiscal 1995 to $369,000 for the third quarter of fiscal 1996. This
decrease reflects the Company's principal payments of a total of $7,200,000 on
its 11.375% Notes since the end of the third quarter last year.
The Company provided for income taxes based on statutory rates of $1,237,000
for the third quarter of fiscal 1996. Due to the utilization of its tax loss
carryforwards, additional paid-in-capital was credited by $1,023,000. The
Company expects to pay minimal taxes for fiscal 1996 due to the utilization of
the tax loss carryforwards.
The Company's net income was $1,821,000 for the third quarter of fiscal 1996
compared to a net loss of $612,000 for the third quarter of fiscal 1995. This
is the Company's highest third quarter net income in its history.
First nine months of fiscal 1996
The Company's net sales increased approximately 13% to $121,773,000 in the
first nine months of fiscal 1996 (the thirty-nine weeks ended November 2, 1996)
from $108,191,000 for the same period of fiscal 1995 (the thirty-nine weeks
ended October 28, 1995). The increase in net sales was attributable to a 17%
increase in comparable store sales. In addition, new stores (stores open less
than one year) that are excluded from comparable store sales are generally
producing higher sales than the older comparable stores or stores which were
closed in the last twelve months. The average number of stores open during the
first nine months of fiscal 1996 was approximately 9% less than the first nine
months of fiscal 1995. The customer count per store (number of customers who
purchase items) increased approximately 14% for the first nine months of fiscal
year 1996 compared to the first nine months of fiscal year 1995. Sales per
selling square foot year to date increased approximately 14% compared to year
to date a year ago. Average sales per store increased approximately 23% during
the same period versus a year ago.
11
<PAGE>
Gross income increased approximately 30% from $33,535,000 for the first nine
months of fiscal 1995 to $43,461,000 for the first nine months of fiscal 1996.
This increase was due to a decrease in the cost of goods sold and a decrease
in occupancy expenses, each as a percent of net sales. The increase in gross
income also reflected lower merchandise costs due to better sourcing of goods,
higher margins on accessories and less promotional sales resulting in less
markdowns.
Selling, general and administrative expenses (SG&A expenses) were $33,574,000
for the first nine months of fiscal 1995 as compared to $36,668,000, for the
first nine months of fiscal 1996, an increase of approximately 9%. SG&A
expenses as a percentage of net sales decreased from 31.0% of net sales to
30.1% . The accrual for bonus was approximately $1,790,000 higher for the nine
months compared to a year ago due primarily to the Company's greater pretax
income and sales. Year to date comparable store sales increased 17% versus a
decline in comparable store sales of 10% for the same period last year. The
other major item impacting the first nine months was an increase of
approximately $700,000 in costs associated with the closing and write-off of
store assets, primarily $5-$20 Stores.
Depreciation and amortization decreased approximately 11%, from $2,639,000 for
the first nine months of fiscal 1995 to $2,351,000 for the first nine months
of fiscal 1996. This decrease is primarily due to fewer stores open at the end
of the third quarter of fiscal 1996 compared to the end of the third quarter of
fiscal 1995.
Interest expense, net, decreased approximately 34% from $1,583,000 for the
first nine months of fiscal 1995 to $1,045,000 for the first nine months of
fiscal 1996. This decrease reflects the decrease in interest expense due to the
Company's principal payments of a total of $7,200,000 on its 11.375% Notes
since the end of the third quarter last year.
The Company provided for income taxes based on statutory rates of $1,374,000
for the first nine months of fiscal 1996. Due to the utilization of its tax
loss carryforwards, additional paid-in-capital was credited by $1,135,000.
The Company expects to pay minimal taxes for fiscal 1996 due to the utilization
of the tax loss carryforwards.
The Company's net income was $2,023,000 for the first nine months of fiscal
1996 compared to a net loss of $2,607,000 for the first nine months of fiscal
1995.
Liquidity and Capital Resources
Cash and cash equivalents totaled $11,825,000 at the end of the first nine
months of fiscal 1996, a 52% increase from the total of $7,773,000 at the end
of the first nine months of fiscal 1995. During the first nine months of fiscal
year 1996, the Company used $8,061,000 of cash compared to $13,576,000 of cash
used during the first nine months of fiscal 1995.
The Company's long-term debt to equity ratio at November 2, 1996 was .48:1 as
compared to 1.14:1 at October 28, 1995. Shareholders' equity was $26,150,000,
a 51% increase as compared to shareholders' equity of $17,315,000 at October
28, 1995.
While merchandise inventories decreased slightly from $31,463,000 at the end
of the first nine months of fiscal 1995 to $31,318,000 at the end of the first
nine months of fiscal 1996, per store inventory increased approximately 10%
based on the number of stores open at the end of each period. The Company's
inventory turn increased slightly for the first nine months of fiscal 1996
compared to the first nine months of fiscal 1995.
The Company has a $20 million revolving bank line of credit facility which
expires in June 1997 that is principally intended for the funding of letters of
credit for merchandise purchased overseas. The Company may make direct
borrowings of up to $10 million of this revolving bank line of credit facility.
12
<PAGE>
Capital spending by the Company for the first nine months of fiscal 1996 was
$3,205,000, primarily for new stores and the remodeling of existing stores.
During the first nine months of fiscal 1996, the Company opened 11 Paul Harris
stores and 2 Paul Harris Direct stores; and closed 22 stores (primarily $5-$20
Stores).
Management currently contemplates opening approximately 21 new stores
(approximately 6 opening in the fourth quarter of fiscal 1996) and remodeling
30 stores by the end of fiscal 1997. Capital spending requirements for these
stores through fiscal 1997 are expected to total approximately $5 million.
Management is presently considering whether to implement a more aggressive
growth strategy; however, no final determination on this issue has been made at
the date of this report.
Sales levels during the fourth quarter of fiscal 1996 to date have been
favorable. Unexpectedly harsh weather during the 1996 December holiday season
or a severe economic down-turn could negatively impact earnings and cash flow;
however, the Company anticipates it will be able to satisfy its ongoing cash
requirements for its operations and capital spending, including payments on
its 11.375% Notes, primarily with cash flows from operations supplemented by
its revolving bank line of credit facility.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits: (27) Financial Data Schedule
(b) Reports on Form 8-K : None
13
<PAGE>
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 thereunto duly authorized.
Paul Harris Stores, Inc.
------------------------
(Registrant)
Date: December 16, 1996 /s/ John H. Boyers
------------------- --------------------------
John H. Boyers
Senior Vice President - Finance and Treasurer
Signing on behalf of the registrant and as
principal financial officer.
14
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CAPTION>
EXHIBIT 27 - FINANCIAL DATA SCHEDULE
PAUL HARRIS STORES, INC. AND SUBSIDIARIES
FORM 10-Q FOR YEAR-TO-DATE ENDED NOVEMBER 2, 1996
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> FEB-01-1997
<PERIOD-END> NOV-02-1996
<CASH> 11,825,000
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 31,318,000
<CURRENT-ASSETS> 44,742,000
<PP&E> 31,004,000
<DEPRECIATION> (12,821,000)
<TOTAL-ASSETS> 63,744,000
<CURRENT-LIABILITIES> 22,697,000
<BONDS> 12,450,000
<COMMON> 1,804,000
0
0
<OTHER-SE> 24,346,000
<TOTAL-LIABILITY-AND-EQUITY> 63,744,000
<SALES> 121,733,000
<TOTAL-REVENUES> 121,733,000
<CGS> 78,312,000
<TOTAL-COSTS> 78,312,000
<OTHER-EXPENSES> 39,019,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,045,000
<INCOME-PRETAX> 3,397,000
<INCOME-TAX> 1,374,000
<INCOME-CONTINUING> 2,023,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,023,000
<EPS-PRIMARY> 0.19
<EPS-DILUTED> 0.19
</TABLE>
