<PAGE>
Form 10-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended May 4, 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 0-5648
OSHMAN'S SPORTING GOODS, INC.
------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 74-1031691
- --------------------------------------------------------------------------------
(State or other jurisdiction of incorporation (I.R.S. Employer
or organization) Identification No.)
2302 MAXWELL LANE, HOUSTON, TEXAS
77023
- --------------------------------------------------------------------------------
(Address of principal executive offices)
(Zip Code)
(713) 928-3171
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
NO CHANGE
(Former name, former address and former 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 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
------ -------
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common stock, $1.00 par value 5,824,699
----------------------------- ---------
<PAGE>
PART I -- FINANCIAL INFORMATION
<PAGE>
ITEM 1 - FINANCIAL STATEMENTS
OSHMAN'S SPORTING GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
MAY 4, 1996 AND FEBRUARY 3, 1996
(in thousands)
<TABLE>
<CAPTION>
MAY 4, FEBRUARY 3,
1996 1996
-------- -----------
ASSETS (UNAUDITED)
<S> <C> <C>
CURRENT ASSETS
CASH AND CASH EQUIVALENTS $ 361 $ 327
ACCOUNTS RECEIVABLE, LESS ALLOWANCE
OF $388 MAY 96, $386 FEB 96 2,878 3,452
MERCHANDISE INVENTORIES 129,234 110,630
PREPAID EXPENSES AND OTHER 7,516 7,819
-------- --------
TOTAL CURRENT ASSETS 139,989 122,228
PROPERTY, PLANT AND EQUIPMENT - AT COST 94,356 93,807
LESS ACCUMULATED DEPRECIATION AND
AMORTIZATION 54,639 53,701
-------- --------
NET PROPERTY, PLANT AND EQUIPMENT 39,717 40,106
OTHER ASSETS 564 589
-------- --------
$180,270 $162,923
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
CURRENT MATURITIES OF LONG-TERM
OBLIGATIONS $ 800 $ 809
TRADE ACCOUNTS PAYABLE 48,909 35,486
ACCRUED LIABILITIES 16,462 18,231
INCOME TAXES 4,422 4,382
RESTRUCTURING RESERVE 399 480
-------- --------
TOTAL CURRENT LIABILITIES 70,992 59,388
DEFERRED FEDERAL INCOME TAXES 504 504
DEFERRED RENTAL ALLOWANCES 3,121 3,180
LONG-TERM OBLIGATIONS 43,642 36,681
STOCKHOLDERS' EQUITY
COMMON STOCK 5,827 5,822
ADDITIONAL CAPITAL 3,922 3,865
RETAINED EARNINGS 52,283 53,504
LESS TREASURY STOCK, AT COST (21) (21)
-------- --------
STOCKHOLDERS' EQUITY 62,011 63,170
-------- --------
$180,270 $162,923
======== ========
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
<PAGE>
OSHMAN'S SPORTING GOODS, INC., AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED
MAY 4, 1996 AND APRIL 29, 1995
(UNAUDITED)
(in thousands, except per share data)
<TABLE>
<CAPTION>
1996 1995
------- -------
<S> <C> <C>
NET SALES $82,719 $69,407
COST OF GOODS SOLD 52,540 43,268
------- -------
GROSS PROFIT 30,179 26,139
OPERATING EXPENSES
SELLING AND ADMINISTRATIVE EXPENSES 29,640 25,909
PRE-OPENING EXPENSES 966 316
STORE CLOSING PROVISION 93 204
MISCELLANEOUS INCOME (295) (322)
------- -------
OPERATING (LOSS) INCOME (225) 32
INTEREST EXPENSE, NET 934 465
------- -------
LOSS BEFORE INCOME TAXES (1,159) (433)
INCOME TAXES 62 45
------- -------
NET LOSS $(1,221) $ (478)
======= =======
EARNINGS (LOSS) PER COMMON AND COMMON
EQUIVALENT SHARE $ (.21) $ (.08)
======= =======
WEIGHTED AVERAGE NUMBER OF COMMON
AND COMMON EQUIVALENT SHARES 5,827 5,811
======= =======
DIVIDENDS PER SHARE $ - $ -
======= =======
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
<PAGE>
OSHMAN'S SPORTING GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MAY 4, 1996 AND APRIL 29, 1995
(UNAUDITED)
(in thousands)
<TABLE>
<CAPTION>
1996 1995
-------- --------
<S> <C> <C>
CASH FLOWS OF OPERATING ACTIVITIES:
NET LOSS $ (1,221) $ (478)
ADJUSTMENTS TO RECONCILE NET CASH (USED)
PROVIDED BY OPERATING ACTIVITIES:
DEPRECIATION AND AMORTIZATION 1,619 1,319
RECOVERIES OF LOSSES ON ACCOUNTS RECEIVABLE (2) (4)
CHARGE TO RESERVE FOR CORPORATE RESTRUCTURING,
NET OF DEPRECIATION AND AMORTIZATION (81) (1,530)
PROVISION FOR LOSSES ON STORE CLOSINGS 93 204
STOCK OPTION AND BONUS PLAN EXPENSE 26 88
(GAIN) LOSS ON DISPOSITION OF FIXED ASSETS (2) 90
AMORTIZATION OF DEFERRED RENTAL ALLOWANCES (59) 55
CHANGES IN ASSETS AND LIABILITIES:
DECREASE IN ACCOUNTS RECEIVABLE 576 619
INCREASE IN MERCHANDISE INVENTORIES (18,604) (10,763)
DECREASE IN PREPAID EXPENSES AND OTHER 1,622 1,558
INCREASE (DECREASE) IN TRADE ACCOUNTS
PAYABLE 13,423 (10,194)
(DECREASE) INCREASE IN ACCRUED LIABILITIES (1,849) 493
INCREASE IN INCOME TAXES 40 6
-------- --------
NET CASH USED BY OPERATING ACTIVITIES (4,419) (18,537)
CASH FLOWS OF INVESTING ACTIVITIES:
PROCEEDS FROM SALE OF FIXED ASSETS 15 13
PURCHASE OF PROPERTY, PLANT AND EQUIPMENT (3,089) (1,895)
PROCEEDS FROM DISPOSITION OF REAL ESTATE
AND LEASEHOLDS 1 4
PROCEEDS FROM NOTE RECEIVABLE 13 13
PROCEEDS FROM LANDLORDS 525 -
-------- --------
NET CASH USED BY INVESTING ACTIVITIES (2,535) (1,865)
CASH FLOWS OF FINANCING ACTIVITIES:
PROCEEDS FROM STOCK ISSUANCE 36 -
PROCEEDS FROM ISSUANCE OF LONG-TERM OBLIGATIONS - 676
PAYMENTS OF LONG-TERM OBLIGATIONS (195) (79)
PROCEEDS FROM REVOLVING CREDIT FACILITY, NET 7,147 19,808
-------- --------
NET CASH PROVIDED BY FINANCING ACTIVITIES 6,988 20,405
NET INCREASE IN CASH AND CASH EQUIVALENTS 34 3
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 327 254
-------- --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 361 $ 257
======== ========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
CASH PAID DURING THE YEAR FOR
INCOME TAXES $ 7 $ 26
INTEREST 642 306
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
<PAGE>
OSHMAN'S SPORTING GOODS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MAY 4, 1996 AND APRIL 29, 1995
(UNAUDITED)
NOTE A
The financial statements are condensed and should be read in conjunction with
the 1995 annual report. The financial information contained herein is unaudited,
but in the opinion of the management of the Company, includes all adjustments
(consisting of normal recurring adjustments) for a fair presentation of the
results of operations for the periods indicated. The results for the three
months ended May 4, 1996 are not necessarily indicative of the results to be
expected for the full year.
<PAGE>
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.
Results of Operations
The following table sets forth selected statements of operations data of the
Company expressed as a percentage of net sales for the periods indicated:
<TABLE>
<CAPTION>
PERCENTAGE OF NET SALES
------------------------
1ST QUARTER
------------------------
1996 1995
------------------------
<S> <C> <C>
Net sales 100.0 100.0
Cost of goods sold 63.5 62.3
------------ ---------
Gross profit 36.5 37.7
Operating expenses
Selling and administrative expenses 35.8 37.3
Pre-opening expenses 1.2 .5
Store closing provision .1 .3
Miscellaneous income (.4) (.5)
------------ ---------
Operating (loss)income (.3) .1
Interest expense, net 1.1 .7
------------ ---------
Loss before income taxes (1.4) (.6)
Income taxes .1 .1
------------ ---------
Net loss (1.5) (.7)
------------ ---------
</TABLE>
Net sales for the first quarter of fiscal 1996 increased 19.2% to $82.7
million compared to $69.4 million in the same period in fiscal 1995. The
increase in sales is primarily attributable to sales contributions from the 11
new SuperSports USA megastores opened in the last 12 months. Sales from
megastores during the first quarter of fiscal 1996 increased 78.7% over the same
period last year and represented 60.1% of total retail sales compared to 40.5%
in the first quarter of fiscal 1995. The increase in megastore sales was
partially offset by reduced sales from the Company's traditional stores. The
Company has closed 17 traditional stores during the last 12 months, including
seven which were included in the restructure group. Sales declines in the first
quarter of fiscal 1996 attributable to closed stores totaled $5.2 million.
<PAGE>
Comparable same store sales in the Company's SuperSports USA megastores
increased 1.4% in the first quarter of fiscal 1996 while sales in comparable
traditional stores decreased 7.2% causing a 3.4% decline in overall same store
sales compared to the same period last year. The decline in overall same store
sales results is related primarily to weakness in snow ski related sales during
the early part of the first quarter and also in-line skate sales. A portion of
the sales decline in the Company's traditional stores is attributable to the
elimination of certain categories from merchandise assortments as they did not
deliver profitable sales. Even though sales have declined somewhat, management
does not believe this strategy will negatively effect profitablility over the
course of the year. Additionally, some cannibalization of sales in the Company's
traditional stores where SuperSports USA megastores have been opened has further
contributed to the decline in traditional same store sales results.
Cost of goods sold was 63.5% in the quarter ended May 4, 1996 compared to 62.3%
for the same period in fiscal 1995. The increase in cost of goods sold as a
percentage of sales compared to last year is primarily attributable to a better
than expected physical inventory result recognized in the first quarter fiscal
1995. In addition, approximately .4% of the increase as a percentage of sales is
related to markdowns taken with respect to the disposition of obsolete snow ski
merchandise.
Selling and administrative expenses as a percentage of sales were 35.8% for the
quarter ended May 4, 1996 compared to 37.3% in the same period last year. This
improvement as a percentage of sales is related primarily to the proportionate
increase in the number of SuperSports USA megastores in operation, which as a
group have a lower selling and administrative cost as a percentage of sales than
the Company's traditional stores, and to the leveraging effect of increased
sales volumes on corporate overhead expenses and other relatively fixed costs,
as a percentage of sales.
Pre-opening expenses of new SuperSports USA megastores are amortized over the
first 12 months of operation. The $966,000 expense in the first quarter of
fiscal 1996 compared to $316,000 in the same period last year relates to the
opening of 12 megastores in fiscal 1995 compared to only four megastores
openings in the prior fiscal year.
Store closing provision expenses were $93,000 in the first quarter of fiscal
1996 compared to $204,000 in the first quarter last year. Excluding restructure
stores, the Company closed four traditional stores in the first quarter of
fiscal 1996 and two in the first quarter of fiscal 1995, and closed an
additional six during the balance of fiscal 1995. The Company expects it will
close approximately seven to ten traditional stores during fiscal 1996.
<PAGE>
Miscellaneous income decreased to $295,000 in the first quarter of fiscal 1996
from $322,000 in the same period in fiscal 1995 primarily as a result of a
decline in fees from foreign licensees partially offset by reduced losses on
disposition of fixed assets.
Net interest expense for the first quarter of fiscal 1996 was $934,000 compared
to $465,000 for the same period last year. The increased interest expense is
related to increased average borrowings under the Company's credit facility.
Income taxes in the first quarters of fiscal 1996 and 1995 are related primarily
to state income taxes. There was no income tax benefit in the first quarters of
fiscal 1996 or 1995 as a result of the Company's inability to fully recognize
the tax benefits of net operating losses and future deductible temporary
differences in the calculation of its tax expense under SFAS 109.
In the quarter ended May 4, 1996, the Company had a pretax loss of $1.2 million
compared to a loss of $433,000 before income taxes in the same quarter last
year. Although the Company experienced improved results from its SuperSports USA
megastores, both in terms of same stores sales results and in store
profitability, they were not sufficient to overcome the effects of the decline
in results from traditional stores and the non-recurrence of the favorable
physical inventory result experienced in fiscal 1995 as discussed above.
Additionally, the increase in pre-opening expenses and net interest expense
further contributed to the decline in results for the quarter. The Company
expects improved performance as it continues to increase the number of
SuperSports USA megastores in operation and to selectively close traditional
stores which do not meet its current criteria for profitability.
Liquidity and Capital Resources
Cash and equivalents at May 4, 1996 were $361,000 compared to $327,000 at
February 3, 1996. In the first quarter of fiscal 1996, cash totaling $4.4
million was used in operating activities. The primary use of cash during this
period was related to an $18.6 million increase in merchandise inventories and a
$1.8 million decrease in accrued liabilities, partially offset by an increase in
trade accounts payable of $13.4 million. The increase in merchandise inventories
and corresponding increase in trade accounts payable are related to inventory
buildup for the Company's Once a Year sale which began in the last week of the
quarter. Additionally, a portion of the increase was related to inventory for
the Company's 25th SuperSports USA megastore which opened in May 1996. The
decrease in accrued liabilities is primarily related to normal fluctuations in
accrued payrolls and related taxes, sales and property taxes, and other such
items.
<PAGE>
Investing activities used cash totaling $2.5 million, primarily for the purchase
of property, plant and equipment, including the renovation of one of the seven
store locations acquired from SportsTown, Inc. in 1995 and the opening of a
SuperSports USA megastore in May 1996. There currently are six additional
SuperSports USA megastores under construction in Utah, Texas and California, of
which at least five are expected to open in fiscal 1996.
Financing activities provided cash of $7.0 million as the Company utilized its
credit facility to meet its working capital needs during the first quarter of
fiscal 1996. Average borrowings under the Company's credit facility during the
first quarter of fiscal 1996 were $38.3 million, and the highest amount of
borrowings and outstanding letters of credit was $45.7 million at April 22,
1996. During the same period of fiscal 1995, average borrowings were $17.1
million, and the highest amount of borrowings and outstanding letters of credit
was $27.6 million at April 24, 1995. The increased level of borrowing in fiscal
1996 is related primarily to the net inventory requirements and capital
expenditures related to the 11 SuperSports USA megastores opened since the end
of the first quarter of fiscal 1995. The Company anticipates it will be able to
satisfy its capital requirements through the use of its credit facility and
internally generated funds. The Company is in compliance with all covenants of
its credit agreement.
In the first quarter of fiscal 1996, the Company closed the last store remaining
in its restructure group, however, a lease termination agreement has not been
obtained. The Company believes the balance remaining in its restructure reserve
is adequate to cover future costs associated with this location.
<PAGE>
PART II -- OTHER INFORMATION
<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.
OSHMAN'S SPORTING GOODS, INC.
Date: June 17, 1996 By: /s/ A. Lynn Boerner
______________________________
A. Lynn Boerner
Vice-President and
Chief Accounting Officer
<PAGE>
ITEM 6. EXHIBITS
Exhibit Index
4.1 Fifteenth Amendment Dated April 12, 1996 to the Financing Agreement dated
August 31, 1992 between the Company and The CIT Group/Business Credit,
Inc.
11.1 Statement Re: Computation of Per Share Earnings
27 Financial Data Schedule
<PAGE>
[LETTERHEAD OF THE CIT GROUP APPEARS HERE]
EXHIBIT 4.1
April 12, 1996
J.S. OSHMAN AND CO., INC.
OSHMAN SPORTING GOODS CO., ALABAMA
OSHMAN SPORTING GOODS CO., ARIZONA
OSHMAN SPORTING GOODS CO., ARKANSAS
OSHMAN SPORTING GOODS CO., CALIFORNIA
OSHMAN SPORTING GOODS CO., FLORIDA
OSHMAN SPORTING GOODS CO., GEORGIA
OSHMAN SPORTING GOODS CO., HAWAII
OSHMAN SPORTING GOODS CO., KANSAS
OSHMAN SPORTING GOODS CO., LOUISIANA
OSHMAN SPORTING GOODS CO., MINNESOTA
OSHMAN SPORTING GOODS CO., MISSOURI
OSHMAN SPORTING GOODS CO., NEVADA
OSHMAN SPORTING GOODS CO., NEW JERSEY
OSHMAN SPORTING GOODS CO., NEW MEXICO
OSHMAN SPORTING GOODS CO., NEW YORK
OSHMAN SPORTING GOODS CO., OHIO
OSHMAN SPORTING GOODS CO., OKLAHOMA
OSHMAN SPORTING GOODS CO., OREGON
OSHMAN SPORTING GOODS CO., SOUTH CAROLINA
OSHMAN SPORTING GOODS CO., TENNESSEE
OSHMAN SPORTING GOODS CO., TEXAS
OSHMAN SPORTING GOODS CO., UTAH
OSHMAN SPORTING GOODS CO., WASHINGTON
OSHMAN'S SKI SKOOL, INC.
OSHMAN'S SPORTING GOODS, INC. - SERVICES
2302 Maxwell Lane
Houston, TX 77223
Gentlemen:
<PAGE>
We refer to the Financing Agreement among us, dated August 31, 1992, as amended
(herein the "Financing Agreement"). Capitalized terms used and not otherwise
defined herein shall have the meanings ascribed to such terms in the Financing
Agreement.
Pursuant to mutual understanding, the Financing Agreement is amended as follows:
1) Subparagraph I of Paragraph 10 of Section 6 of the Financing Agreement is
hereby amended (a) by deleting the language "less than $750,000.00" appearing
under EBITDA and across from "May 4, 1996 and for the last day in the first
quarter of each fiscal year thereafter" and substituting $250,000.00" in lieu
thereof; and (b) by deleting the language "less than $4,000,000.00" across
from "August 3, 1996 and for the last day in the second quarter of each
fiscal year thereafter" and substituting "$3,250,000.00" in lieu thereof.
2) Paragraph 11 of Section 6 of the Financing Agreement is hereby amended by
adding the following language at the end of the paragraph:
"To the extent the Companies do not fully use the Capital Expenditures
permitted in the fiscal year ended February 3, 1996, then the amount not so
expended may be added to the Capital Expenditures amount permitted for the
fiscal year ended February 1, 1997."
Except as otherwise specifically provided herein, no other change in any of the
terms or provisions of the Financing Agreement is intended or implied. If the
foregoing is in accordance with your understanding, please sign and return to us
the enclosed copy of this letter to so indicate.
Very truly yours,
THE CIT GROUP/BUSINESS
CREDIT, INC.
By: /s/ Pamela Wyniek
----------------------------------
Title: Assistant Secretary
<PAGE>
Read and Agreed to:
J.S. OSHMAN AND CO., INC.
OSHMAN SPORTING GOODS CO., ALABAMA
OSHMAN SPORTING GOODS CO., ARIZONA
OSHMAN SPORTING GOODS CO., ARKANSAS
OSHMAN SPORTING GOODS CO., CALIFORNIA
OSHMAN SPORTING GOODS CO., FLORIDA
OSHMAN SPORTING GOODS CO., GEORGIA
OSHMAN SPORTING GOODS CO., HAWAII
OSHMAN SPORTING GOODS CO., KANSAS
OSHMAN SPORTING GOODS CO., LOUISIANA
OSHMAN SPORTING GOODS CO., MINNESOTA
OSHMAN SPORTING GOODS CO., MISSOURI
OSHMAN SPORTING GOODS CO., NEVADA
OSHMAN SPORTING GOODS CO., NEW JERSEY
OSHMAN SPORTING GOODS CO., NEW MEXICO
OSHMAN SPORTING GOODS CO., NEW YORK
OSHMAN SPORTING GOODS CO., OHIO
OSHMAN SPORTING GOODS CO., OKLAHOMA
OSHMAN SPORTING GOODS CO., OREGON
OSHMAN SPORTING GOODS CO., SOUTH CAROLINA
OSHMAN SPORTING GOODS CO., TENNESSEE
OSHMAN SPORTING GOODS CO., TEXAS
OSHMAN SPORTING GOODS CO., UTAH
OSHMAN SPORTING GOODS CO., WASHINGTON
OSHMAN'S SKI SKOOL, INC.
OSHMAN'S SPORTING GOODS, INC. - SERVICES
By /s/ A. Lynn Boerner
--------------------------------------------------
Title: Vice-President and Chief Accounting Officer
<PAGE>
EXHIBIT 11.1
OSHMAN'S SPORTING GOODS, INC. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE
(UNAUDITED)
(in thousands, except per share data)
<TABLE>
<CAPTION>
THREE MONTHS ENDED THREE MONTHS ENDED
MAY 4, 1996 APRIL 29, 1995
------------------ ------------------
FULLY FULLY
PRIMARY DILUTED PRIMARY DILUTED
------- ------- ------- -------
<S> <C> <C> <C> <C>
NET LOSS $(1,221) $(1,221) $ (478) $ (478)
======= ======= ======= =======
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING 5,827 5,827 5,811 5,811
EXCESS OF SHARES ISSUABLE UPON
EXERCISE OF STOCK OPTIONS OVER
SHARES DEEMED RETIRED UNDER THE
"TREASURY STOCK" METHOD - - - -
------- ------- ------- -------
WEIGHTED AVERAGE NUMBER OF COMMON
AND DILUTIVE COMMON EQUIVALENT
SHARES OUTSTANDING 5,827 5,827 5,811 5,811
======= ======= ======= =======
LOSS PER COMMON AND COMMON
EQUIVALENT SHARE $ (.21) $ (.21) $ (.08) $ (.08)
======= ======= ======= =======
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> FEB-01-1997
<PERIOD-START> FEB-04-1996
<PERIOD-END> MAY-04-1996
<CASH> 361
<SECURITIES> 0
<RECEIVABLES> 2,878
<ALLOWANCES> 0
<INVENTORY> 129,234
<CURRENT-ASSETS> 139,989
<PP&E> 94,356
<DEPRECIATION> 54,639
<TOTAL-ASSETS> 180,270
<CURRENT-LIABILITIES> 70,992
<BONDS> 43,642
0
0
<COMMON> 5,827
<OTHER-SE> 56,184
<TOTAL-LIABILITY-AND-EQUITY> 180,270
<SALES> 82,719
<TOTAL-REVENUES> 82,719
<CGS> 52,540
<TOTAL-COSTS> 52,540
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 934
<INCOME-PRETAX> (1,159)
<INCOME-TAX> 62
<INCOME-CONTINUING> (1,221)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,221)
<EPS-PRIMARY> (.21)
<EPS-DILUTED> (.21)
</TABLE>
